The USDJPY chart below was posted on social media @AidanFX July 28 2021 showing a possible bearish market pattern where bears/sellers could be waiting to get in the market. The pink bearish pattern triggers SELLS at the BC 0.50% Fib. retracement level. Traders would need to be patient and wait for the pair to pullback higher towards the BC 0.50% Fib. retracement level and also see if the dynamic 200 moving average (blue) will offer possible resistance.
USDJPY 1 Hour Chart July 28 2021
After triggering SELLERS at the BC 0.50% level USDJPY formed a bearish divergence pattern (purple) in the support/resistance zone signalling traders that bears were taking control. All these bearish patterns was all I needed to be confident on taking the SHORT/SELL trade July 28 2021 for a move lower. Entered SELL Entry at 110.20 with Stop Loss at 110.60 targeting 1:2 RR level at 109.40.
USDJPY 1 Hour Chart July 28 2021
From the bearish pattern BC 0.50% sell getting triggered, the formation of the purple bearish divergence pattern (signalling upside weakness), with price also hitting a support/resistance zone (pink box) and price respecting the dynamic 200 moving average resistance (blue) USDJPY eventually moves lower and on July 29 2021 price hits the proposed 1:2 RR target at 109.40 from 110.20 for +80 pips. If you followed me on social media @AidanFX you too could have caught the USDJPY move lower. Always have multiple strategies all lined up before entering trade. Never trade off 1 simple strategy. When multiple strategies line up it allows you to see a clearer trade setup.
USDJPY 1 Hour Chart July 29 2021
Of course, like any strategy/technique, there will be times when the strategy/technique fails so proper money/risk management should always be used on every trade. Hope you enjoyed this article and follow me on social media for updates and questions> @AidanFX
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