USDJPY has just rejected a major Weekly/Monthly support-resistance level.
You can usually expect price to do one of two things once that happens, no matter the trend direction; retrace or breakout.
My bias is and always resides with the trend, so I took advantage of this retracement (temporary move) to the 0.3 fib level to enter a short-term sell, before taking the long term buy at that same level, once the sell tp is hit.
This scenario is valid as long as we reject and trade ABOVE the fib level.
More conservative entry: wait for break and retest of resistance to take the buy.
The TP for the long position will be 114.500, or the last higher high.
The next Swing TP is 118.405, and the last TP will be 124.000.
You can stay in the buy, from the fib lvl, to TP 1 & 2, so long as price doesn’t demonstrate too much resistance/rejects 114.500. Simply put the SL for the buy to break-even and trail your profits after each new higher high. Nice tip to increase your r:r.
We’re currently in an uptrend so that means buys only, but a sell scenario is possible and valid has long as we trade below the resistance level and demonstrate enough rejection of said level.
The fib level might not hold, so if you’re already in the sell, (like demonstrated on the chart), just put your SL to break-even and trail your profits until 111.7000, which is the next and final TP. You could re-enter again for a sell if price rejects the resistance on the daily and if sellers demonstrate enough strength. if we start trading below 111.7000, we’re entering a longer term (Monthly) downtrend towards 108.000 then 105.000.
{edit; it's RSI in overbought, not oversold lol}