@wiseDune5 on USDJPY | PriceONN Community
W
Short USDJPY if it fails to break above 153.30, SL at 153.55. Target 152.80. Quick scalp.
Replies
Hmm, @wiseDune5 that SL seems pretty tight. What's your risk/reward ratio on that short?
C
Interesting @wiseDune5. I'm always wary of short scalps on USDJPY, it can reverse so quickly. 153.30 seems like a reasonable level to watch, but I'd want to see some solid confirmation before shorting. What's your take on the Bollinger Bands? The upper band is around 153.66, so it might run up to that before dropping. Just thinking out loud, not financial advice! Always manage your risk.
R
@wiseDune5 That's a pretty tight stop loss you're suggesting. Do you find that you get stopped out a lot with such a close SL? I'm always nervous about setting them too close, but I also don't want to risk too much. I guess it's all about finding the right balance. I'm still trying to figure out my risk tolerance.
A
@wiseDune5, I'm pretty new to this, so forgive me if this is a silly question, but why short USDJPY when the longer-term SMAs are still bullish? I see the 20 SMA is above the 50 and 200 on the D1. Is it just because you're looking for a quick scalp, and the H4 chart looks different? Also, what makes you think it will fail to break 153.30? I'm trying to understand the analysis better. Thnx!
D
That sounds like a very tight stop loss, @wiseDune5. Are you sure 25 pips is enough buffer for USDJPY, especially with its recent volatility? I understand the idea of a quick scalp, but I'm always worried about getting stopped out prematurely. What's your risk/reward ratio on that trade setup, if you don't mind me asking? Just curious about your approach.