USDJPY Technical Analysis
In our members only area, we posted the USDJPY 1 Hour Chart (London Update) advising our members/clients that the pair would continue rallying higher and for traders to continue looking for possible buying opportunities.
USDJPY 1 Hour Chart March 18/2020 (Members Only Area)
USDJPY 1 Hour Chart March 19/2020: Once price broke above the wave A (red) of the above Elliott Wave chart a bullish momentum breakout pattern triggered BUYS as shown in the charts below. A bullish momentum breakout pattern requires 3 steps to trigger a BUY. First, a high on price chart forms simultaneously with a high above the 80 level on the Stochastic indicator. Second, a pullback in price that respects the 50 moving average together with a move lower below the 80 level on the Stochastic indicator. And third, BUY on the move above the first step high breakout level only if price respected the 50 moving average and watch for Stochastic indicator to register back above the 80 level to confirm momentum. USDJPY moved higher over 300 pips and hit the 1:3 RR Target for +340 pips from the momentum breakout level.
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 Twitter for updates and questions> @AidanFX or chat me on Skype > EWF Aidan Chan
*** Always use proper risk/money management according to your account size ***
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