Bullish trend bounce to reach the larger bearish trendline
Long based on trendline 3rd touch Additionally supported by COT data 80% Non-Comm Inst. Reportables Long USDJPY. (too late but will edit with a better write up later)
Trade upon confirmation C2 level, then if C1 level. C1 will be double the volume of C2 in order to compensate for risk taken with C2. C1: risk 55 Rew 80 C2: risk 70 Rew 204 Net Risk: 125 Rew: 284 = 2.27
Expecting a small bullish move after touching the key area (yellow highlighted rectangle). Based of last couple of times the area has been touched. (See Green Arrows). Average price action after touching the area is 70 pips (see price range, left). Risk/reward: 20/20 = 1 Confidence: 60% It fits within my risk management criteria, for the new month.
If Inverted H&S forms then we may see a bullish break of the grey zone.
If the price shows a reversal pattern in the C range I will enter a low risk short targeting the green area, D range, and manage trade accordingly. If D range is met, I will enter a low-risk buy and a high-risk buy
Bearish Bat forming on the 1h chart. Confluence with the 50% retracement. If this pattern fulfills then I will target the .382 level.