USD/JPY reversal started, 1:3 rr ratio possible

October 04, 2023 03:42 AM PDT | By Invezz

USD/JPY reversal started, 1:3 rr ratio possible — Image source: Invezz

USD/JPY trading strategy

Sell USD/JPY
Entry price: 149
Stop loss: 152
Leverage: 3x
Take profit 1: 145
Take profit 2: 142
Take profit 3: 140
Timeframe: 2-3 weeks
Risk-reward ratio: 1:3

USD/JPY chart & technical analysis

USD/JPY rallied since the start of 2023; not even the regional banks’ crisis in the US in March could stop it. Now, it trades near the 2022 highs and at levels where the Bank of Japan intervened.

The upside move following a contracting triangle resembles a terminal pattern. Such patterns form at the end of impulsive waves and signal a major top or a bottom is near.

Japanese Yen fundamentals

The JPY was sold aggressively because the Bank of Japan kept a dovish bias. But now the weakness has reached levels where the central bank reacted in the past, hinting that it is unwilling to tolerate it.

USD to JPY trade idea takeaways

The risk-reward ratio is an attractive one given that USD/JPY stretched so high
I’m expecting the decline to happen much faster than the upside
Once it stretches to 140, more downside is possible
A move to 152 would invalidate this scenario

The post USD/JPY reversal started, 1:3 rr ratio possible appeared first on Invezz.

Disclaimer

The content, including but not limited to any articles, news, quotes, information, data, text, reports, ratings, opinions, images, photos, graphics, graphs, charts, animations and video (Content) is a service of Kalkine Media LLC (Kalkine Media, we or us) and is available for personal and non-commercial use only. The principal purpose of the Content is to educate and inform. The Content does not contain or imply any recommendation or opinion intended to influence your financial decisions and must not be relied upon by you as such. Some of the Content on this website may be sponsored/non-sponsored, as applicable, but is NOT a solicitation or recommendation to buy, sell or hold the stocks of the company(s) or engage in any investment activity under discussion. Kalkine Media is neither licensed nor qualified to provide investment advice through this platform. Users should make their own enquiries about any investments and Kalkine Media strongly suggests the users to seek advice from a financial adviser, stockbroker or other professional (including taxation and legal advice), as necessary. Kalkine Media hereby disclaims any and all the liabilities to any user for any direct, indirect, implied, punitive, special, incidental or other consequential damages arising from any use of the Content on this website, which is provided without warranties. The views expressed in the Content by the guests, if any, are their own and do not necessarily represent the views or opinions of Kalkine Media. Some of the images/music that may be used on this website are copyright to their respective owner(s). Kalkine Media does not claim ownership of any of the pictures/music displayed/used on this website unless stated otherwise. The images/music that may be used on this website are taken from various sources on the internet, including paid subscriptions or are believed to be in public domain. We have used reasonable efforts to accredit the source (public domain/CC0 status) to where it was found and indicated it, as necessary.