The USD/JPY chart below was posted to social media on July 28, 2021 showing a possible bearish market pattern where bears/sellers could be waiting to get in the market. The pink bearish pattern triggered sell signals at the BC 0.50% Fib. retracement level. Traders would have needed to be patient and wait for the pair to pullback higher towards the BC 0.50% Fib. retracement level, and to see if the dynamic 200-moving average (blue) would offer possible resistance.

USD/JPY One-Hour Chart: July 28, 2021

After triggering sell signals at the BC 0.50% level, USD/JPY formed a bearish divergence pattern (purple) in the support/resistance zone, thus signaling to traders that bears were taking control. All of these bearish patterns were all I needed to be confident on taking the short/sell trade on July 28 for a move lower. I entered a sell entry at 110.20 with a Stop Loss at 110.60 targeting the 1:2 RR level at 109.40.

USD/JPY One-Hour Chart: July 28, 2021

After the pair saw the bearish pattern BC 0.50% sell getting triggered, the formation of the purple bearish divergence pattern (signaling upside weakness), price hitting a support/resistance zone (pink box), and price respecting the dynamic 200-moving average resistance (blue), USD/JPY eventually moved lower. On July 29, 2021, the price hit the proposed 1:2 RR target at 109.40 from 110.20 for +80 pips.

USD/JPY One-Hour Chart: July 29, 2021

Of course, like any approach, there will be times when the strategy fails, so proper money/risk management should always be used on every trade.