USD/JPY TRENDLINE BREAK OUT BUY ZONETrade Setup Rationale
Entry Point: 149.500
Likely triggered by a bullish breakout above a descending trend line (resistance). Entry might be near the breakout level, assuming the price retests the trend line (now support).
Example: If the breakout occurs around 150.00, a pullback to the 150.00-151.00 zone could serve as the entry point.
Take Profit (TP) Targets
TP1: 152.60 (near prior resistance or a measured move).
TP2: 154.80 (extension of the bullish momentum, possibly a multi-month high).
Stop Loss (SL)
148.25 (placed below the trend line/swing low to protect against false breakouts).
Risk-Reward Considerations
Scenario: Entry at 150.00, SL at 148.25 (175 pips risk).
TP1 (152.60): +260 pips (1:1.5 risk-reward).
TP2 (154.80): +480 pips (1:2.7 risk-reward).
Note: Wider stops may suit swing traders, but ensure alignment with your strategy.
Key Factors to Validate
Trend Confirmation: Confirm bullish momentum with indicators (e.g., RSI > 50, MACD crossover).
Fundamentals: Monitor BoJ intervention risks or Fed policy shifts impacting USD/JPY.
Price Action: Watch for a clean breakout with volume.
