Analysis + Trade Setup on USDJPY by ThinkingAntsOk
Use this as a guide to develop your view of the chart.
Main items we see on the 4hs chart:
a)Price is against a Major Resistance Zone
b)We can see a Wedge Pattern against that resistance level ( Weakness of the bullish movement)
c)We had a first Breakout of the Wedge pattern followed by a corrective structure on the outside
d)Now the price is heading towards the resistance zone again on a new try of breaking that level
e)If the Resistance Zone is not broken above the previous Higher high at 109.493 and a bearish movement starts breaking below 108.069, we will open
short positions with the parameters shown in the chart. (check Stop/Entry/TP/Break-Even)
f)Risk Reward Ratio of the trade is 1:2 (that means that we expect to win the double of what we put on risk)
Daily Chart:
Main items we see on the 4hs chart:
a)Price is against a Major Resistance Zone
b)We can see a Wedge Pattern against that resistance level ( Weakness of the bullish movement)
c)We had a first Breakout of the Wedge pattern followed by a corrective structure on the outside
d)Now the price is heading towards the resistance zone again on a new try of breaking that level
e)If the Resistance Zone is not broken above the previous Higher high at 109.493 and a bearish movement starts breaking below 108.069, we will open
short positions with the parameters shown in the chart. (check Stop/Entry/TP/Break-Even)
f)Risk Reward Ratio of the trade is 1:2 (that means that we expect to win the double of what we put on risk)
Daily Chart: