USD/JPY Analysis on the 1-Hour Chart

In this analysis of USD/JPY, we are currently observing an uptrend, with buyers maintaining control of the market. A key support zone, marked in green, has been identified as an area where buyers have previously stepped in to push the price higher.

While the price is not currently in this zone, our strategy anticipates a potential pullback to this support level. If the price returns to this green zone, it could attract buyers again, leading to a potential upward movement in line with the prevailing trend.

Trading Plan:

Long Positions: If the price retraces to the green support zone, look for confirmation of buyer interest, such as bullish candlestick patterns, an increase in buying momentum, or positive divergence. These signals could provide an opportunity to enter long positions.
Stop Loss: Place a stop loss slightly below the green support zone to manage risk in case the support fails to hold.
Profit Target: The first target would be the previous resistance level or the next significant resistance zone, where sellers may return.
This approach allows us to trade with the trend while maintaining a disciplined risk management strategy. Monitoring the price action closely around the green support zone is crucial for executing this idea effectively.