USD/JPY 4 Hour
Long or Short: Long
Entry Point: 81.20 (At Fib 23.6% Level)
Stop Loss: Very tight at 80.95
Profit Target/s: 1st at 81.80 (38.2% Fib), 2nd at 82.20 (50% Fib)
Reward-to-risk Ratio: 2.4:1 for the first PT and 4:1 for the second PT
Risk percentage: 2 Positions equaling 1% of Trading A/c
Indicators used: Fibonacci, Trend Line, RSI and ATR. Also considering Support and Resistance Zones.
Trade Rationale: USD/JPY broke out to the topside of the falling trendline on 18th of April. Since then it did not manage to break the 38.2 Fib Restracement for possibly a move back down to the 23.6 Fib and also the purple falling trendline. Strong Support there as can be seen from the red circles and additionally the now turned support of the trendline. RSI has stalled just below 70 and could drop a little to gain some breath when the price moves down to the 23.6 Fib before it’s probably going back up. Furthermore the RSI on the daily chart broke its downward trend implying a possible further move up.
Trade Adjustments: None