USDJPY4H

JPYUSD 4H Local Timeframe Analysis

On the 4-hour local timeframe, after clearing liquidity in the form of last month's low, I am considering a long position from the weekly order block. On the local timeframe, the entry is planned at the OTE level.

On the 1-hour timeframe, there is a shift in character (CHOCH), signaling a potential reversal. However, I am cautious as this shift may be false. A change in character often points to a possible market reversal, but confirmation is key.

Trade Plan:

This is a long-term trade, so we will manage risk carefully. The risk per trade is limited to 1% of the deposit, with the stop-loss placed beyond the boundary of the weekly order block.

Targets:

Target 1: 155.88This is a slightly challenging level as it contains an OTE zone, where a reversal is possible, though unlikely. Upon reaching this target, the stop-loss will be moved to breakeven, securing the trade.

Target 2: 156.75At this level, 30% of the position will be closed to lock in profits.

Final Target: 158.87This corresponds to the imbalance on the weekly timeframe. The position will be fully closed at this level.

Summary:

By following this plan, risk is minimized, and profits are strategically secured along the way. The long setup is based on higher timeframe confluences and potential price reversals indicated by changes in market structure.