USD/JPY 1-Hour Candlestick ChartUSD/JPYOANDA:USDJPYlabagold Entry Point: ≈149.394 This is set just below the current price and near the lower boundary of the recent consolidation/support zone. The anticipation is that the price will dip slightly to this level before reversing up. Stop Loss (SL): ≈149.068 The stop loss is placed below a recent swing low or potential support level. This represents the point where the bullish thesis is invalidated. Risk: The risk on this trade is the distance between the entry point and the stop loss: 149.394−149.068=0.326 pips. Target Point (Take Profit - TP): ≈150.917 This is a significant distance above the current price and the recent highs. It is likely targeting a prior high or a psychological level like 151.000 (though the target is slightly below it). Reward: The potential reward is the distance between the target point and the entry point: 150.917−149.394=1.523 pips. Risk/Reward Ratio (RRR): The RRR is calculated as Reward / Risk: RRR= 0.326 1.523 ≈4.67 A Risk/Reward Ratio of ≈4.67:1 is excellent. This means that for every 1 unit of risk, you are aiming for over 4.5 units of profit. A high RRR is a key characteristic of a favorable trade setup. Potential Scenarios & Considerations: Bullish Confirmation (Trade Works): The price follows the projected path (the small red line with an arrow), touches the entry point, finds strong support there, and reverses sharply upward to eventually hit the 150.917 target. Trade Fails: The price breaks convincingly below the stop loss at 149.068. This would indicate a failure of the support level and a likely continuation of the downtrend/retracement, invalidating the buy setup. The price moves up and reaches the target without dipping to the entry point (missing the entry). Trader Action Summary The setup suggests a Limit Buy order to be placed at 149.394, anticipating a final dip before the rally. Action: Limit Buy at 149.394 Contingency: A break below 149.068 indicates a stronger selling momentum, and the trade should be exited (Stop Loss triggered). Goal: Targeting a significant extension of the recent upward trend