Trade #2: USDJPY – Supply Coming In

Trade #2 was on the USDJPY 15-minute chart. We had trend alignment on the 1, 5, 15 and 30-minute charts to the downside and the 60 min was consolidating. This was not the perfect setup but I still took it because of the following reasons:

USDJPY 15 min chart
USDJPY 15 min chart
  1. There was supply coming in which was confirmed, then a few bars after we had no demand which is weakness.
  2. As the price then mushroomed over (moved sideways), we saw a sign of weakness, an upthrust which caused the price to trade to the lower trigger point of the Supply bar.
  3. We also had trend alignment in four out of five timeframes

The trade entry was as follows:

Entry Price: 130.295
Stop Loss: 130.700 (Above the upthrust)
Profit Target: 129.750
Profit $: USD$419.48

USDJPY 15 min chart
Trade Outcome USDJPY 15 min chart

The currency pair continued its downward trajectory. It had a slight hiccup at around 130.20 where this was a bit of support. There was follow-through once we had a widespread down bar on average volume which allow the currency pair to tank.

Take a look at our previous trade on AUDJPY

The software tool I use to identify my high-probability trade setups is TradeGuider’s Smart Center Pro