USDJPY
- Currency Pair: USDJPY
- Position: sell
- Lot Size: 0.02
- Risk/Reward Ratio: 2.40
- Profit/Loss: -$1.44
Entry Rationale
- The outlook has shifted downward on both the 1-hour and 4-hour charts.
- Given the strong bearish momentum on the lower timeframes, it seemed likely that the price would decline toward the previous high level on the daily chart.
- A downtrend had formed on the 5-minute chart, prompting a pullback sell entry near the 21-period moving average.
Explained in detail in the market analysis article below↓
Entry Point, TP and SL Level
4h
1h
5m
Entry was taken on the pullback to the 21-period moving average on the 5-minute chart.
The take-profit target is set just before the previous high level on the daily chart.
The stop-loss was planned for when the price clearly broke above what was identified as the last swing high on the 5-minute chart.
Since that level was broken, the stop-loss was triggered.
Trade Review
The price did eventually fall to the originally planned take-profit zone, but the stop-loss placement was too loose.
It’s likely that the level identified as the swing high on the 5-minute chart wasn’t actually a valid swing point.
The entry was taken as soon as the price touched the 21-period moving average, but it would have been better to wait for clearer price action confirmation before entering.
