USDJPY
- Currency Pair: USDJPY
- Position: sell
- Lot Size: 0.02
- Risk/Reward Ratio: 1.95
- Profit/Loss: +$7.20
Entry Rationale
- Bearish outlook on both the 4-hour and 1-hour charts.
- Waiting for a pullback on either timeframe before entering a short position.
- After the price rose to the previous low on the 1-hour chart, a downtrend formed on the 5-minute chart. A pullback sell was executed at the resistance-turned-support level.
Explained in detail in the market analysis article below↓
Entry Point, TP and SL Level
4h
1h
5m
Short entry at the resistance-turned-support line of the 5-minute downtrend.
The planned take-profit level was just before the recent lows on the 1-hour and 4-hour charts.
The planned stop-loss was set at the point where the 5-minute downtrend would be broken.
Price reached the take-profit level, so the position was closed with a profit.
Trade Review
This time, the trade followed the trend of the 1-hour and 4-hour charts, which were the reference timeframes, and the entry point was well-timed.
After entering the trade, a new low was formed on the 5-minute chart, so the stop-loss was moved to just above the most recent pullback high, effectively eliminating the risk of a loss.
From there, I focused on letting profits run and was able to exit at the planned take-profit level.
There was a scheduled speech by Chair Powell at 9:30 PM Japan time, so the plan was to take profit before then. Fortunately, the price reached the target level before the speech.
