USD/JPY Bullish Breakout: High-Probability Buy Setups
The USD/JPY 4-hour chart is showing a clear Bullish Gartley harmonic pattern, followed by a breakout of a descending trendline. After reaching point D of the pattern, the price initiated a bullish reversal. Currently, the price has broken through a key descending resistance line, signaling strong buyer momentum. The TDIGMA oscillator confirms this, with momentum indicators consistently moving towards overbought territory, reflecting the current buying pressure.
1. Buy on Trendline Breakout
With the confirmed breakout of the descending trendline, a potential strategy is to buy into the continuation of this upward movement, capitalizing on the positive momentum.
Entry: Buy around the 148.69 zone to capture the continuation of the breakout.
Stop Loss: 145.369 (near the support line).
Risk-Reward Ratio: 1:1
Rationale: The strong resistance break and ongoing bullish pattern suggest a high probability that the pair will continue to rise.
2. Buy on a Small Pullback
Description: Another buying opportunity may arise if there’s a small pullback to retest the broken trendline as support. This can offer a lower-risk entry with the trend in your favor.
Entry: Buy between 147.30 - 148.00 (on a retest of the breakout line).
Stop Loss: 145.369 (near the support line).
Risk-Reward Ratio: 1:1
Rationale: Pullbacks after breakouts often offer high-probability entries. However, this pullback may not occur if the bullish momentum continues without pause.
USD/JPY presents a clear bullish scenario after breaking the descending trendline. The strategy to buy on the continuation of the breakout is the most recommended, with a high probability of success. Buying after a small pullback also offers an attractive strategy with strong potential. Keep an eye on price action for optimal entries.
1. Buy on Trendline Breakout
With the confirmed breakout of the descending trendline, a potential strategy is to buy into the continuation of this upward movement, capitalizing on the positive momentum.
Entry: Buy around the 148.69 zone to capture the continuation of the breakout.
Stop Loss: 145.369 (near the support line).
Risk-Reward Ratio: 1:1
Rationale: The strong resistance break and ongoing bullish pattern suggest a high probability that the pair will continue to rise.
2. Buy on a Small Pullback
Description: Another buying opportunity may arise if there’s a small pullback to retest the broken trendline as support. This can offer a lower-risk entry with the trend in your favor.
Entry: Buy between 147.30 - 148.00 (on a retest of the breakout line).
Stop Loss: 145.369 (near the support line).
Risk-Reward Ratio: 1:1
Rationale: Pullbacks after breakouts often offer high-probability entries. However, this pullback may not occur if the bullish momentum continues without pause.
USD/JPY presents a clear bullish scenario after breaking the descending trendline. The strategy to buy on the continuation of the breakout is the most recommended, with a high probability of success. Buying after a small pullback also offers an attractive strategy with strong potential. Keep an eye on price action for optimal entries.
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