The chart below of the USDJPY pair is currently trending to the down side making lower lows and lower highs. If looking to trade USDJPY , traders should be patient and wait for price to push higher first, before looking to enter SELLS. Waiting for price to push higher above the equilibrium level (Light Blue Line) and into the premium sell zone (Green Box) will give the trade a better risk to reward setup. We expect the August 8 2022 high to hold and for price to reverse on a push higher. A good area to look for SELLS is near the closest support/resistance level (Red Line). Also traders should watch for price to respect and test the dynamic support/resistance 200 Moving Average (Dark Blue) for more confirmation the pair will reverse lower. Traders can use the August 8 2022 high as a stop loss or a soft stop/mental stop if can’t find a tighter stop.
USDJPY 1 Hour Chart August 11 2022
A trader should always have multiple strategies all lined up before entering a trade. Never trade off one simple strategy. When multiple strategies all line up it allows a trader to see a clearer trade setup. We at EWF never say we are always right. No market service provider can forecast markets with 100% accuracy. Only thing we at EWF 100%, is that we are RIGHT more than we are WRONG.
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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