For Traders

Analytical Reviews

Trading plan

18.05.202211:43 Forex Analysis & Reviews: Trading tips for USD/JPY

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.

The bullish trend in USD/JPY broke on May 12, but the market tried to recover for the following days.

Most likely, the price will return to the 2015 low in the weekly chart, especially if the pair moves 3,500 pips or more.

This means that on the one hand, the bullish momentum is finished, while on the other hand, there is a good potential movement. In this situation, the best move is to take short positions, following this plan:

Since there is a three-wave pattern (ABC), where wave A represents the selling pressure on May 12, traders can open short positions up to the 50% retracement level of the current prices. Place stop loss at 131, and take profit on the breakdown of 126.

This idea is based on the "Price Action" and "Stop Hunting" strategies.

Good luck and have a nice day!

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.