We are currently looking at the USD/JPY as a potential mid to long-term long. If we take a look at the 4H chart, we can spot some of the current key levels for the pair. We have our current resistance at around the 118.800 handle, and our current support at the 116.000 handle. Given our perference to trade with the overall longer-term underlying trend, we are looking to buy the USD/JPY at support. Therefore, a move back to the 116.000 level will trigger us long, with a 50 pip stop at around the 115.500 level.
Alternatively, we may get a break of the 118.800 , in which case we will be looking to long the pair on a retest of 118.800, with a stop just below the 20 .
As far as our targets are concered, if we get the 116.000 trade, our natural taget will be the top of the range at 118.800; making for a 50 pip stop and 280 pip reward (over 5 to 1 risk-to-reward). If we get the 118.800 trade, our targert will be the highs at 121.500; making for a likely tight ~50 pip stop, and a 270 pip target (again, likely over 5 to 1 r&r).
With both of these potential setups, we'd keep an eye on momentum, looking for confirmations of some sort.