An emergence of a divergence in the USDJPY pair in a 1H timeframe signals a potential reversal to a bullish trend . Furthermore, I could see there was an evident falling wedge pattern that could be witnessed, signaling a possible opportunity to long the position
Strategy to approach this potential long trade for USDJPY:
1) Wait for the price to break previous LH.
2) Based on the calculation of lot size of 1.13, I would place a Buy stop on breakout point at 130.518
3) Stop Loss - 129.623
4) Keeping the risk/reward ratio to 1:1, I kept the Take Profit 1 level at 131.507
Strategy once Take Profit 1 is achieved:
1) Once Take profit 1 is achieved, I will revise the Stop loss level to the previous Take Profit 1 level i.e. 131.507 for breakeven.
2) For the 2nd leg of the trade my Take Profit 2 is 132.507
Strategy to approach this potential long trade for USDJPY:
1) Wait for the price to break previous LH.
2) Based on the calculation of lot size of 1.13, I would place a Buy stop on breakout point at 130.518
3) Stop Loss - 129.623
4) Keeping the risk/reward ratio to 1:1, I kept the Take Profit 1 level at 131.507
Strategy once Take Profit 1 is achieved:
1) Once Take profit 1 is achieved, I will revise the Stop loss level to the previous Take Profit 1 level i.e. 131.507 for breakeven.
2) For the 2nd leg of the trade my Take Profit 2 is 132.507