This trade was a loss. The USDJPY had been slowly drifting downwards, when I noticed a shift in momentum.
The USDJPY broke down lower, but the move was actually quite shallow. When price retraced and broke the last swing high, I felt that the trend might be turning, and entered long. Price wavered after my entry, and created a range on the M1 chart. I moved my stop loss to just below the range, although this should've been a warning sign to get out.
The range on the M1 chart broke downwards, hitting my stop loss. I got out at -0.5R. Moving my stop loss to below the range was a good move. However, the market's indecision after 2 candles (or 10 minutes) on the M5 chart should've told me that bulls were having great difficulty breaking upwards. I really should've got out at the close of the second candle.
My entry could've been placed higher above the swing high. As it was, I was buying right on the resistance level. A few pips higher would've been good. It wouldn't protect me from a fakeout, but it would've protected me from a 100% retracement.
(click to enlarge)