USDJPY Breakout with both long and short entries
We've got a great descending wedge forming on the USDJPY pair. Now, according to the rulebook, the descending wedge is a reversal pattern formation and the pair will break upwards; therefore, set your buy orders at 121.440 (good amounts of support) and your take profits at the resistance line at 122.000. Honestly, it's a big triangle so we could quite easily see some wild market movement and see the pair smash through the resistance level but play it safe and take 700 or so pips from the market and don't get greedy!
The other possibility that it will break downwards as the price has been going sideways for a few days. Therefore, set sell orders just below a large low at 121.075. Set the take profit for the support level at 120.650 and as I said before, it's a big triangle which could cause big movements; in which case, set another, smaller order with a take profit level at 119.800.
EDIT: Forgot to say because it's breakout trading ensure you have tight stops enabled because it could swing the other way very quickly! (Especially with high-impact meetings the US coming up!)
If you play it right you might even hit your targets for the week.
The other possibility that it will break downwards as the price has been going sideways for a few days. Therefore, set sell orders just below a large low at 121.075. Set the take profit for the support level at 120.650 and as I said before, it's a big triangle which could cause big movements; in which case, set another, smaller order with a take profit level at 119.800.
EDIT: Forgot to say because it's breakout trading ensure you have tight stops enabled because it could swing the other way very quickly! (Especially with high-impact meetings the US coming up!)
If you play it right you might even hit your targets for the week.