[FX Trade Record] USD/JPY +40.4 pips, EUR/JPY +49.7 pips gained! Explain environmental recognition and entry basis

We have compiled the trade record from August 17, 2022.
This time, with a short USD/JPY (bearish on pullbacks) and a long EUR/JPY (buying on dips), we achieved a total profit of about 90 pips.


Trade using channel lines and a composite trend

I will explain in detail, using chart images, what kind of market context was recognized for each currency pair and where the entry and exit rationale came from.

USD/JPY: +40.4 pips Bearish on Pullback Trade

First, I will explain the USD/JPY trade.

Market context (1-hour)

On the 1-hour chart, the price rose until the blue uptrend channel’s upper boundary overlapped with the red lower-high line from the previous day’s blue uptrend.

To confirm a pullback buy or a continuation with a higher timeframe trend, it is very important to observe the trend on a larger timeframe than the entry chart.
＊At this time, I confirmed the blue rising trend (higher highs and higher lows). Usually this would be a long setup, but I targeted the mid-point pullback after the blue high was made, looking for a lower price on the 15-minute chart.

Entry and exit rationale (15-minute)

On the 15-minute chart, an orange lower-high downtrend line appeared, indicating a perfect pullback entry opportunity.

• Entry (S):At the "S" point in the image. After touching upward, it broke below the yellow rising trendline support and consolidated, then was enveloped by the 20 MA, so I went short.
  
• Exit (take profit):Exited below the downtrend channel formed by the yellow wave on the chart.
  
  
  

Trade result

It became a carryover position, but as expected it reached the lower bound of the channel and I could exit nicely.

EUR/JPY: +73.7 pips Total Long on Dips Trade

Next, the long trade on EUR/JPY. This was partially closed to extend profits.

Market context (1-hour)

On the 1-hour chart, after the lows were climbed, the price moved into an upward phase. I confirm the momentum on the higher timeframe.

Ideally, trading in the blue trend direction is advantageous, but my entries are generally based on the 20 and 80 moving averages.
＊I thought it might still pull back to the blue resistance high!?

Entry and exit rationale (15-minute)

On the 15-minute chart, the price is moving within the green channel line, and breaking above the orange line strengthened the upward momentum.

• Entry (L):At the "L" point in the image. After briefly breaking out above the green flag pullback high, I entered.
  
• Partial exit (first take):Take partial profit near the recent high (+24 pips). The remaining position exited at +49.7 pips.
  

Final settlement outcome

As the price extended further, I exited all at around the 137.20 resistance band. This yielded a large overall profit.

Summary: Stable trading by combining channel lines with horizontal lines

The winning factor in this trade was “catching the flow with the higher-timeframe channel line and narrowing the entry with the lower-timeframe lines.”

In FX, you don’t need overly complex indicators; as shown here, correctly drawing lines can reveal high-probability points.

The methods are available for sale on Gogojan in two formats ⇩

Yosan's Profile — A marketplace for global trading methods and tools - GogoJungle