USD/JPY produced a bearish Inside Bar yesterday. Today’s H1 chart shows that the price is about to make a breakout. If the price makes an H1 breakout, the sellers are to wait for a bullish correction followed by a bearish reversal candle at the breakout level to go short in the pair. Let us have a look at the H1-USD/JPY chart.
Chart 1 USD/JPY H1 Chart
The chart shows that the pair is trading below the level of 1.094820. The level is a significant level, where the price had a bounce several times. Thus, a breakout at the level may attract the sellers eyeing to go short in the pair. If the price goes back to the breakout level after a breakout, the sellers may wait for an H1 bearish reversal candle to trigger a short entry. The price may find its next support around 0.94530. However, the H1 chart shows that the price may head towards the level of 0.93800. This allows the sellers to take a partial profit and let the rest of the trade run to earn more pips.
Trade Summary:
Entry: Sell below 0.94740
Stop Loss: Above 0.94800
Take Profit 1: 0.946300
Take Profit 2: 0.94585