USD/JPY TRENDLINE BREAK OUT BUY ZONE

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Trade 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.

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