For Traders

Analytical Reviews

Technical analysis

22.01.202111:33 Forex Analysis & Reviews: Trading idea for the USD/JPY pair

This information is provided to retail and professional clients as part of marketing communication. It does not contain and should not be construed as containing investment advice or investment recommendation or an offer or solicitation to engage in any transaction or strategy in financial instruments. Past performance is not a guarantee or prediction of future performance. Instant Trading EU Ltd. makes no representation and assumes no liability as to the accuracy or completeness of the information provided, or any loss arising from any investment based on analysis, forecast or other information provided by an employee of the Company or otherwise. Full disclaimer is available here.

An interesting scenario occurred in USD / JPY yesterday, which confirmed the end of the ongoing correction.

Taking this into account, it would be best to work for an increase in price, following this strategy presented below:

So, since the quotes have formed three wave patterns (ABC), in which wave A is the bullish movement observed at the beginning of this month, it would be ideal to open long positions, the target of which is 104.4, followed by 104.75 and 105.7.

The limit for this transaction is the 23.6 % retracement level, or 103 in particular.

Of course, traders need to monitor risks to avoid losing profit. Trading is very precarious, but also profitable if the approach used is correct.

The strategy above uses Price Action and Stop Hunting methods.

Good luck!

Back to the list

Open trading account

InstaForex analytical reviews will make you fully aware of market trends! Being an InstaForex client, you are provided with a large number of free services for efficient trading.