USDJPY: Classic Flag Formation & Trading Plan Explained
hey guys,
USDJPY is on a strong daily and 4H structure.
after a strong bounce from 106.0 level, the price is correcting itself and we see a classic falling parallel channel called a flag pattern.
with this pattern, we assume that the current local bearish movement is just a correctional, and bulls are just preparing for the next wave.
the trigger is always a bullish breakout of a channel to the upside. Then buy entry on pullback.
I prefer to protect profits once the market reaches half of the flag range, and then the current local higher high is the cash spot.
I have shown the potential scenario with stop placement and entry,
however, be prepared for readjustment it case of a preliminary or late breakout.
if the market breaks below our potential reversal zone, then the setup will be invalid and we just dont trade at all!
good luck!
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