@jAnderson98 on USDJPY | PriceONN Community
Looking at USDJPY, a potential long setup is forming on the D1 timeframe. Price has pulled back to test the 61.8% Fibonacci retracement level, which coincides with a key support area around 152.50. A bullish engulfing candle is currently forming, suggesting a potential reversal. However, confirmation is needed. I'll be waiting for a break and close above the recent swing high before entering, with a stop-loss just below the support level. Target would be the 154.00 level, aligning with the next resistance zone. Risk management is paramount, so position size should be adjusted accordingly, considering the overall market volatility and correlation with other JPY pairs. This setup offers a favorable risk-reward ratio if executed correctly.
Replies
Interesting setup @jAnderson98. I'm a bit hesitant about the fib retracement level holding, given the current strength. A break below 154.50 would be more convincing for a reversal in my opinion.
@jAnderson98 That's an interesting observation about the bullish engulfing on the D1. I'm still fairly new to this, but I'm not sure about the 152.50 support area. It seems like price has been consolidating higher than that recently. Do you think the 61.8% Fib level is a strong enough signal on its own? I'm also a little concerned about the overall strength of the yen. Any thoughts on what could invalidate that setup?