USDJPY: How to Trade in the Oversold Market
The price bounced from 101.00 support zone. We got a strong bullish candle that can confirm the price reversal. RSI and MACD are also going to confirm the price reversal and a further upward movement. RSI will provide the reversal signal from the oversold zone.
The price stays below the lower line of Bollinger Bands indicator. We have signals telling us that the market is oversold, and it has the potential and space to move upward.
How to trade?
If we open long trades right now, we will have an entry point far from the support zone. It will make a stop size huge, and we won't have a good risk/reward ratio. That's why it will be better to wait for a pullback to 101.00 support and search for buy signals using the hourly timeframes.
Stop orders for all long positions must be placed below 101.00 support. Profit targets should be placed at 105.00 resistance and MAs.
Disclaimer!
This post does not provide financial advice. It is for educational purposes only! You can use the information from the post to make your own trading plan for the market. But you must do your own research and use it as the priority. Trading is risky, and it is not suitable for everyone. Only you can be responsible for your trading.
The price stays below the lower line of Bollinger Bands indicator. We have signals telling us that the market is oversold, and it has the potential and space to move upward.
How to trade?
If we open long trades right now, we will have an entry point far from the support zone. It will make a stop size huge, and we won't have a good risk/reward ratio. That's why it will be better to wait for a pullback to 101.00 support and search for buy signals using the hourly timeframes.
Stop orders for all long positions must be placed below 101.00 support. Profit targets should be placed at 105.00 resistance and MAs.
Disclaimer!
This post does not provide financial advice. It is for educational purposes only! You can use the information from the post to make your own trading plan for the market. But you must do your own research and use it as the priority. Trading is risky, and it is not suitable for everyone. Only you can be responsible for your trading.
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