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USD/JPY Long Setup - Two 1:3 Trade Scenario Walkthroughs

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Direct from the desk of Dane Williams.



Back today with a follow up to Monday morning's USD/JPY daily support zone setup.

Click that link and check out the higher time frame zone that held, meaning that after zooming in to find an entry, we were only looking to buy.

After a couple of USD bullish sessions this week, I wanted to go over a few trade scenarios that show how 1:3 risk:reward could have easily been extracted from this one already.

Let's get into them right now, below.

USD/JPY Trade Scenario 1:

Remember that because we're above higher time frame support (the grey box), we're only looking to be buyers on short term retests.

The first scenario below, uses the very first short term area of resistance that gets retested as support, as an entry.

USD/JPY Hourly:

This one needed you to have entered last week (obviously before I wrote Monday's blog), but for those of you who follow my strategy the setup was there.

With an agressive stop below the intraday zone, you can see that the 1:3 was on offer.

USD/JPY Trade Scenario 2

Moving onto the second trade scenario, this one was a setup that formed following Monday's blog.

We're still only looking to be buyers on short term retests and this uses a zone that forms after the bounce in scenario 1.

USD/JPY Hourly:

Once again, with a fairly aggressive stop below any of the intraday swing lows, you can see that another 1:3 was on offer from this setup.

The cool thing about these couple of scenarios is that if you took them both and added into your original position, the 1:3 turns into a 1:6.

Your risk remains the same, because you can move your stop on the first position to break-even. But at the same time, your reward doubles.

Something for you guys to think about.

Best of probabilities to you,

Dane.



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