USDJPY → At 152.000 Resistance! Will it break to 160.000?

USD/JPY has been bullish since January 2021 and is currently in an ascending triangle pattern, indicating a potential push through the 152.000 resistance level. Is this the moment to long?


How do we trade this? 🤔

USDJPY → At 152.000 Resistance! Will it break to 160.000?
We need to wait for a confirmed breakout of 152.000. The probability of a breakout is high, but we need the confirmation of support at 152.000 to justify a long entry. Once we see a strong bull candle off of support, a 1:2 Risk/Reward on the Weekly timeframe is a straightforward trade to take. The RSI is around 60.00 and above the Moving Average, providing enough headroom for a move to the upside.

It's also reasonable to take a long trade on the Daily timeframe which will allow you to get an earlier entry and a better Risk/Reward, but the Weekly timeframe provides us with a clearer picture of the situation. When Take Profit #1 is hit, half of the position should be sold, the stop loss should be moved to the entry price, and the second half of the position should go to Take Profit #2. This locks in profits after the first take profit which is at 1:1 Risk/Reward.


💡 Trade Idea 💡

Long Entry: 153.570
🟥 Stop Loss: 150.900
✅ Take Profit #1: $156.400
✅ Take Profit #2: $158.900
⚖️ Risk/Reward Ratio: 1:2


🔑 Key Takeaways 🔑

1. Ascending Triangle at 152.000 Resistance level, a bullish pattern.
2. 30EMA providing key support above the ascending support band.
3. Wait for a breakout of 152.000 resistance and confirmation of support to long
4. Enter a 1:2 Risk/Reward trade taking half profits at 1:1 Risk/Reward.
5. RSI at 60.00 and above the Moving Average, supports long bias.


💰 Trading Tip 💰
The longer a trend continues after 3 legs, the probability of that trend continuing lessens. Because of this decreased probability, we ought to reduce our risk when entering trades.


⚠️ Risk Warning! ⚠️
Past performance is not necessarily indicative of future results. You are solely responsible for your trades. Trade at your own risk!


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