USDJPY
- Currency Pair: USDJPY
- Position: buy
- Lot Size: 0.02
- Risk/Reward Ratio: 1.20
- Profit/Loss: +$9.47
Entry Rationale
- The daily and 4-hour charts are in an uptrend.
- The price has pulled back to the previous high line on the 4-hour chart.
- The 21-period moving average on the 4-hour chart is also aligning with that level.
Explained in detail in the market analysis article below↓
Entry Point, TP and SL Level
4h
1h
5m
Entered a long position with a limit order after the price pulled back to the previous high line on the 4-hour chart.
The take-profit target was set just below the recent high on the 4-hour chart.
The stop-loss was placed below the last swing low on the 4-hour chart.
The price reached the take-profit point, and the position was closed.
Trade Review
This trade was based on a limit order set according to the 4-hour chart.
Although the lower timeframes were showing strong bearish momentum at the time, I placed the buy order in advance and chose not to watch the chart to avoid hesitation.
It may not have been a perfect trade in terms of precision, but I believe it was better than getting shaken out by short-term price fluctuations.
Since this wasn’t a scalp trade, the stop-loss was set fairly wide, but the risk-reward ratio was 1:2, which made the setup solid.
After entry, there was a long tug-of-war between buyers and sellers that lasted about seven hours.
Each time I checked the chart, the price was still moving sideways, but I stayed patient and held the position.
After breaking out of the range, the price triggered stop-losses from traders holding short positions and then extended smoothly in the expected direction.
Right before the price reached the take-profit level, a major U.S. economic indicator was released. However, I had already moved the stop-loss to breakeven, so there was no longer any risk of loss, and I kept the position open.
Technically, there was still room for further upside, but with more economic releases on the horizon and not wanting to sleep while holding the position, I kept my original take-profit target unchanged.
The trade closed as planned.
