I am still bearish on USDJPY. However, you can see from the shorter time frame, there are multiple occasions where fake breakouts happen. This usually stops out the traders with tight SL. Unless you have a clear strategy, after being stopped out from this pair, it is highly likely that you will move on to other pairs/asset classes to find your next pot of gold.
But if you are persistent and have the patience, you will notice this fake breakout patterns. It is getting shorter and shorter. Now, with the support at 142.472, a breakdown will be great as it sends the price to 140 level.
If you wants to short now, it would be better to have a wider SL, say 145.60 , the previous peak where it is more likely not to surpass. A higher SL will mean you cannot be greedy in your position size initially to rein in the gains if it moves in your favour. It is better to have a small position and the market agrees with you than to go on an aggressive mode of say 5-10 contracts position size and shortly market moves against you. The stress would be too much to bear seeing the losses running........
Find one strategy that suits your personality , risk profile and work on it tirelessly.
But if you are persistent and have the patience, you will notice this fake breakout patterns. It is getting shorter and shorter. Now, with the support at 142.472, a breakdown will be great as it sends the price to 140 level.
If you wants to short now, it would be better to have a wider SL, say 145.60 , the previous peak where it is more likely not to surpass. A higher SL will mean you cannot be greedy in your position size initially to rein in the gains if it moves in your favour. It is better to have a small position and the market agrees with you than to go on an aggressive mode of say 5-10 contracts position size and shortly market moves against you. The stress would be too much to bear seeing the losses running........
Find one strategy that suits your personality , risk profile and work on it tirelessly.
Note
a strong resistance at the 145 price level
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Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.