USDJPY
- Currency Pair: USDJPY
- Position: sell
- Lot Size: 0.04
- Risk/Reward Ratio: 1.40
- Profit/Loss: -$4.60
Entry Rationale
- The price has broken below the starting point of the recent high on the 1-hour chart.
- On the 5-minute chart, the range has been broken to the downside, shifting the outlook to bearish.
- Wait for a pullback before entering.
Explained in detail in the market analysis article below↓
Entry Point, TP and SL Level
4h
1h
5m
After the price broke below the 5-minute range support and the origin line of the recent high on the 1-hour chart, I waited for a pullback and entered a short position.
The planned take-profit zone was around 148.135 yen, a level likely to be respected on the 5-minute chart, but I expected a deeper drop and aimed for around 148.000 yen.
The stop-loss was set in case the price was strongly pushed back into the 5-minute range.
Since I couldn’t watch the chart at the time, I placed a rough stop with a preset order.
The stop-loss was triggered, and the trade was closed at a loss.
Trade Review
Originally, I was planning to look for a long setup today, but I quickly switched to a short entry.
The reason was that the price broke below the lower range on the 5-minute chart and also dropped below the origin line of the recent high on the 1-hour chart, signaling strong selling pressure.
Although I rushed the entry a bit and ended up getting in at a less-than-ideal level, I still believe the underlying logic wasn’t bad.
After entering, the price climbed close to my stop-loss area before dropping.
If I had been watching the chart at that moment, I might’ve closed the position manually.
Eventually, the price didn’t reach my target take-profit zone, and just as the European session began, a sharp upward move triggered my stop.
Considering that the 1-hour trend wasn’t clearly bearish and that it was a counter-trend trade against the 4-hour uptrend, it might not have been the best setup.
That said, since it was a short entry aimed at capturing a 4-hour correction, I still see it as a valuable losing trade.
Accidentally placing the order twice and ending up with double the intended lot size wasn’t a good move.
