this analysis starts from higher timeframes. As you can see in the attached analysis i predicted usdjpy was coming to test this level some days ago. Now at this level we have a major structure daily level (black line) with a couple of fibonacci levels for confirmation.
Another confirmation comes from , that has a divergence on the last highs. In the we just exited a OVERBOUGHT condition.
But all of those indicators are not enough, i want to see a reverse pattern made by price action. And there it is in form of an kicker on 4hr chart.
Price is retracing a little bit offering us a better risk to reward ratio.
Stop 1 atr above highest high, first target at 1:1. Second target along with structure.
If you have any question or opinion, don't be shy and comment below.
Otherwise, see you in the next chart!