USD/JPY at a Key Level: Is a New Trend Emerging?USD/JPY is currently in the D1 discount zone and approaching a D1 FVG, where a potential reaction may occur. The price is moving within a downtrend channel for now.
If a reaction happens at this level, we should wait for a channel breakout. A trade opportunity arises either on the breakout retest or immediately after the breakout, confirming bullish momentum and increasing the probability of an upward move.
Risk Management Strategy:
To secure profits and manage risk effectively, consider scaling out at key levels:
• Target 1: Close 25% of the position to secure initial profits.
• Target 2: Close 50% of the position to lock in more gains.
• Target 3: Close 100% of the remaining position for full take profit.
Risk Reward 1.3
Monitoring price action closely at this level is crucial.
