USDJPY: Beautiful Reversal Setup

FX:USDJPY   U.S. Dollar / Japanese Yen
Hi Trader,

Thanks for checking out this idea.

Here we have a beautiful 2618 setup formed on the hourly timeframe. It's not often that the double bottom is so nicely formed with symmetry and all, not that it changes the plan in any way :) The 2618 is a reversal strategy, so this is therefore a counter-trend setup.

Price is currently around 100 pips above my entry point of 108.400, therefore it is very likely we will make new highs before pulling back. If this happens, I adjust the fibonacci levels accordingly, and the entry is moved up to whatever price the new 61.8% retracement comes in at.

The reason we enter at the 61.8% is because it provides a greater than 1:1 risk to reward on the trade, and that is the entry point I have back-tested.

If you like this setup, leave a like, it's free and I really appreciate the feedback.

Good trading,

Trade closed: target reached: First Target reached