After a long growth and significant correction, USD/JPY is poised for further price increase, but there are certain prerequisites for it.
1. A false breakdown of the support level of 131.5, followed by a solid buying pressure;
2. A pin bar that is within the bullish trend.
Currently, the pair has a small ABC pattern inside a much larger ABC pattern. This points to a possible increase in quotes.
And considering that recent price movements form a three-wave pattern (ABC), where wave A represents the bullish pressure on August 11-12, traders can enter the market by buying from current prices up to the 61.8-50% retracement levels. Set stop loss at 131.7 and take profit on the breakdown of 135.6 and 139.5.
This trading idea is based on the "Price Action" and "Stop Hunting" strategies.
Good luck and have a nice day!
