Short Trade set-up on USDJPY Hourly chart.

Earlier today, we concluded today’s bias is to go Short.

The Hourly chart above is currently forming a tradable pattern. Price seems to have bottomed temporarily @ 90.06. Hence, we expect price to retrace to the area between 90.42 and 90.78 (which is the area between the 50% and 100% fib. retracement levels – drawn from the most recent Hourly swing high to the current price-bottom). Let’s seek to sell around this area. If price exceeds the 90.78 level upward, our bearish bias is no more valid and we enter a no-trading zone. Our primary profit target is @ 89.87 (the 127% fib. ext.).

Also, if price breaks below 90.06 (current price-bottom) before retracing to the sell-area, we’ll have to redraw our Fibonacci tools using a new bottom & the most recent Hourly swing high to determine new potential areas to sell.

The 15min. chart above gives us a clearer view of the Hourly price action and the potential areas to sell (please note it’s advisable to set a Limit order ahead of time as price could move up to these levels and reverse sharply in our favor).
This chart is rather cluttered but if we look closely, there are a couple of potential reversal levels available. You choose your preferred level based on your personality.

fib 50% ret. @ 90.42;
fib 61.8% ret. @ 90.51.

Personally, based on the broken most-recent Hourly swing low @ 90.49, which I believe is a potentially strong reversal level; I would opt for the 61.8% ret.

Initial Stop Loss @ 90.80; primary Profit target @ 89.87 (Please remember to factor in your broker’s pip-spread).

Please note that all these Fibonacci (fib.) levels have other pivots, overlapping fibs or previous highs/lows supporting them (they are the cause of this cluttered chart). As such, price could reverse at any of the points. The issue here is that the higher the fib level you choose to sell from, the smaller the pips you’ll risk and the more your pip-profit; BUT, also the more the likelihood of you missing the trade as price might not retrace that high before moving back downward.
You need your own discretion here.

Please keep your risk low. Don’t risk more than 2% of your capital. Personally, I risk about 0.5% per trade; and each trade has a potential profit target of about 1% – based on my exit levels.
We MUST NEVER assume we KNOW where price is going next!

P.S.:
Also, always keep in mind any major news releases. Be wary of possible price volatility during these periods.