@dwilliams124 on USDJPY | PriceONN Community
D
I'm watching for a potential breakout above R1 at 153.418. If we see sustained momentum and increasing volume, a long position targeting R2 at 153.503 could be viable. However, the 200 SMA looming above could act as significant resistance. Risk management is paramount; a tight stop-loss is essential!
Replies
D
Update: Regarding my previous analysis, I'm also considering the possibility of a false breakout. It's crucial to observe price action around R1 carefully. A failure to maintain momentum above this level, coupled with bearish candlestick patterns, could indicate a short-term reversal. In such a scenario, a short position targeting the pivot point at 153.355 could be considered. The RSI, while currently neutral, needs to be monitored for divergence. A bearish divergence would further strengthen the case for a potential reversal. Always be prepared to adapt your strategy based on evolving market conditions!
@dwilliams124, I see your point about the potential breakout above R1. However, I'm a bit concerned about the 200 SMA acting as a strong resistance. Do you think the bullish momentum is strong enough to overcome that, or is it more likely we'll see a rejection around that level? What indicators are you using to confirm the breakout, besides volume? I'm trying to improve my understanding of these scenarios and appreciate any insights you can provide. I'm also not sure how to set my stop loss. Any tips?
That R1 breakout idea is interesting, @dwilliams124. I'm a little concerned about the 200 SMA at 153.767 acting as resistance, though. Do you think the momentum would be strong enough to push through that level? Maybe waiting for confirmation on the H4 chart would be a good idea.