USD / JPY rebounded after showing a strong collapse in November. This opened opportunities to take short positions in the pair.
Since there is a three-wave pattern (ABC) in the pair, where wave A is the observed selling pressure last November 20, traders can open short positions up to the 50-61.8% retracement levels of 113.7 and 114. Set stop loss at 115 and take profit on the breakdown of 112.5.
This strategy is under the Price Action and Stop Hunting methods.
Good luck and have a nice day!
