Instructor's Response:
Nice job...you nailed it!
This USDJPY pair is in a downtrend on the daily chart. So, the higher probability entry would be to wait for the pair to trade up to a resistance level (sell on a rally up to resistance) and then open a short position back in the direction of the trend with a stop above the resistance line.
Good work...
As a side note, in an uptrend we would do the opposite. We would wait for the pair to pullback to a support level (buy on a dip down to support) and then open a long position back in the direction of the trend with a stop below the support line.
