The US Dollar has been incredibly strong, rising over 1500 pips against the Yen since the start of March. The daily chart is showing some consolidation at the current levels and this is filtering down to the hourly chart as well.

Having said that, this is a reversal trade idea, going against the dominant trend, so be mindful of that.

The recent hights have been getting lower, but each small pullback has been met with buying support.

Having said that, I'm looking for a 100 pip possible downside with my stop loss above the recent high. 

I have plotted the yellow zone to indicate a level of resistance and if I were looking for a tighter stop, my exit would be just above that yellow zone.

USDJPY short during this consolidation

May 10 2022

1