Analysis -XAUJPY looking bullish after showing signs of a reversal. Sellers pushed price down into support but the following day, buyers bid up the price to back above support before the second daily candle close. -The 2 candle price action resulted in a bullish engulfing setup AT SUPPORT which is a bullish sign. -The third day (after daily bullish engulfing candle) price formed a red inside bar which is indicative of consolidation on lower time frames -On the 1H time frame, price just broke a bearish trendline to the upside. -There is also bullish RSI divergence on the 1H time frame which further eludes to price possibly moving higher in the coming days. -The reward/risk is good for the setup (given the distance between daily S/R levels)
Entry, Stops and Targets -Long Entry: 144,336 (Enter long after price pulls back) -Stop Loss: 143,170 (Set stop below the lowest daily candle) -Take Profit: 146,668 (Set targets at a minimum of 2 times your stop depending on entry) = 2R