USDJPY > Detailed Analysis and Markup, What's Next?
The USDJPY currency pair is currently near a critical level of trendline support, which has been tested multiple times in the past. Additionally, we have identified a strong bullish harmonic bat pattern forming, adding further confirmation to a potential buy entry.
The key level to watch is the 135.800-135.600 zone, where the trendline support and the D leg completion of the harmonic pattern converge. Traders can consider two possible ways to enter this trade.
The first approach is to set a limit order at the D leg completion of the harmonic pattern, which provides a more aggressive entry strategy. This method allows traders to enter at a predefined price level, reducing the risk of being caught in a false breakout.
The second approach is to wait for a confirmation of the bullish move, which can come in the form of a bullish candlestick pattern or a break above the nearest resistance level. This approach provides a more conservative entry strategy and may result in a better risk-to-reward ratio.
Regardless of the entry method, traders should use proper risk management techniques, including setting stop-loss orders and adjusting position sizes to manage risk appropriately.
In conclusion, with the trendline support and the bullish harmonic bat pattern lining up near the 135.800-135.600 zone, traders may consider a potential buy entry in USDJPY. However, it is essential to wait for confirmation or use a limit order to reduce the risk of being caught in a false breakout.
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The key level to watch is the 135.800-135.600 zone, where the trendline support and the D leg completion of the harmonic pattern converge. Traders can consider two possible ways to enter this trade.
The first approach is to set a limit order at the D leg completion of the harmonic pattern, which provides a more aggressive entry strategy. This method allows traders to enter at a predefined price level, reducing the risk of being caught in a false breakout.
The second approach is to wait for a confirmation of the bullish move, which can come in the form of a bullish candlestick pattern or a break above the nearest resistance level. This approach provides a more conservative entry strategy and may result in a better risk-to-reward ratio.
Regardless of the entry method, traders should use proper risk management techniques, including setting stop-loss orders and adjusting position sizes to manage risk appropriately.
In conclusion, with the trendline support and the bullish harmonic bat pattern lining up near the 135.800-135.600 zone, traders may consider a potential buy entry in USDJPY. However, it is essential to wait for confirmation or use a limit order to reduce the risk of being caught in a false breakout.
Please if you like this analysis, follow me and like this analysis, share it with your trading community
Trade closed: target reached:
close 100 pips
