After a prolonged decline in the pair, caused by the large-scale interventions by the Bank of Japan, as well as weakening of dollar amid falling inflation, USD/JPY moved into a phase of horizontal consolidation, with a clear upper limit at 140.8. In this situation, sellers have no choice but to set their stop orders beyond the level.
So, considering that there is a three-wave pattern (ABC), where wave A represents yesterday's bullish pressure, traders can enter the market by buying up to the 50% retracement level. Stop loss could be placed at 138.5, then exit the market by taking profit on the breakdown of 140.8.
This trading idea is based on the "Price Action" and "Stop Hunting" methods.
Good luck and have a nice day! Don't forget to control the risks!
