Long USD / JPY - High Ratio Return - Long Term Uptrend
This long term uptrend since Jan 2021 has been in a solid channel since the channel break out in August 2022.
We're now hitting the support area (resistance from April 22), so as long as that holds we're still buyers, and given the rejection of 131.5 indicated by the Pinbar signal, (see below for how to trade the pin bar), we're now waiting for a pullback into that support area to buy back up into the long term channel.
There are three profit areas marked on the charts, each one a fibonacci level highlighting the historic price action levels of confulence and potential unpredicability (which is why we take some profit). There is a 6:1 ratio outcome for this long term uptrend on the daily chart, twice my minimum entry ratio to consider a trade to be viable in order to gain a profit.
We're now hitting the support area (resistance from April 22), so as long as that holds we're still buyers, and given the rejection of 131.5 indicated by the Pinbar signal, (see below for how to trade the pin bar), we're now waiting for a pullback into that support area to buy back up into the long term channel.
There are three profit areas marked on the charts, each one a fibonacci level highlighting the historic price action levels of confulence and potential unpredicability (which is why we take some profit). There is a 6:1 ratio outcome for this long term uptrend on the daily chart, twice my minimum entry ratio to consider a trade to be viable in order to gain a profit.
Comment:
We're now waiting patiently for the pull back into the supply zone above 132, if we break that green line, our trade will become invalid and we save money.
Trade active:
Trade active at 3% risk of total trading account size, stop just below the 131 green zone.
Comment:
Looking at the volume profile, we won't see much selling pressue until around the TP1 around 135, I expect buying volume to increase now.
Comment:
I don't trade the channel, but they are a good guide to support and resistane, supply and demand levels, we've hit the bottom edge of that channel and I'm expecting a breakthrough at 1.34.25 and that to become the new support level and then to carry on towards TP1
Comment:
There will be a nice little pullback into 134 as the gas appear to be removed from the pair, this will bring in more buyers and we can then continue on as planned towards 135 and the first real profit taking point which is our TP1
Trade closed: target reached:
We've broken through the 135 resistance line with great strength and into our first TP, (TAKE PROFITS), we have a challenge to break through the messy area between 135.5 to the 137 TP2, then ride it high.
Trade active:
We are still active with two more profit targets 137 and 139+
Comment:
The FOMC report gave us that little bit of mid-week pull back to get the buyers interested again, as expected. We'll now wait patiently to progress back upto the next T2
Trade closed: target reached:
Second profit target has been reached, two profits locked in and we're now trading for free with the third.
Trade active:
Final run upto TP3 for the end of week trading and before the US markets open, FED updates also, not expecting any different and will hold this one over the weekend since I expect (I don't forecast or guarrantee), that the US$ will continue to the upside, DXY is making very strong moves.
Comment:
We need to allow a pullback on this trade now to bring in more buyers, they are sat there waiting, but not interested up at the highs, we'll see after US open times and some news
Comment:
Our expected pullback is in action into the volume profile above 135. I'm a buyer above our Bullish Tail Bar Signal that formed above the 131.5 support level. We're still active in this trade.
Comment:
The DXY is now pushing to the upside against the other basket of global currencies, expecting this pair to respond now on towards T3
Comment:
I still have my final position to move onto TP, but would consider adding to my position should we get a pullback into 135. This will meet my minimum risk /reward ratio. Another great trade.
Comment:
Ok so we've drove to the upside with great strenth so looking forward to carry on towards TP3. I've sat patiently not trading and just enjoying life while the market continues in our favour, never trade the news!
Trade closed: target reached:
Profit target 3 has been reached with an 8:1 profit ratio, where can you get that sort of return on investment? Further proof of the strategies we use are about capital growth and spending more quality time doing other things and not staring at trades all day trying to grab some profit. I rarely ever day trade or stress out.
This trade had 3 profit targets, the last two trades were at break even, so it was impossible to lose money on this trade. Let your profits run and cut your losses quick.
This trade had 3 profit targets, the last two trades were at break even, so it was impossible to lose money on this trade. Let your profits run and cut your losses quick.
Comment:
DXY showing some weakness now and we're looking to get back into this buy trade around 140 - 141 when we see a strong move with support to the upside, watch the DXY for confirmation and US10Y gilts
Trade closed: target reached:
Another continual trade from this pair, focus on the daily time frame to find your set-up and it will return time and time again for you
