First of all, I have to admit I missed this one. I was looking for a deeper retracement to at least 109, and possibly 108.50 before buying. They say hindsight is 20/20, but sometimes its still worth noting.USD/JPY 4H Chart 5/24(click to enlarge) One of my buy on a dip strategy is to wait for price to come back to a key support or support area. In this case, price did approach 109. Now, this did happen in the European session when I was catching some Zs. We can consider the area around 109 support because it is also the middle of the previous consolidation (5-10 to 5-18).Another important clue in the 4H chart is that price stalled just above 109, while the RSI stalled just above 40. After pushing above 70, if the RSI is holding above 40, we should consider the bullish momentum intact. So as price stabilized in the European session, we could have gone into the 1H chart to focus on the entry timing. USD/JPY 1H Chart 5/24 (click to enlarge)The 1H chart shows that after price came down to 109.15, it did indeed find support. We saw this in the 4H chart too. What we could have done is put in a buy entry order above the 109.15 low, with a stop just below 109. Let's say 109.30 with stop at 108.80. The target of the previous high at 110.50, gives you a potential reward of 120 pips vs. risk of 50 pips. There is also potential upside towards 111, so if you have 2 positions from 109.30, you have a strong reward to risk ratio. At this point, we might still have 1 more chance to go long with a target of 111, if price returns to 109.50. Now however, the reward to risk won't be as good, and stop placement is a bit more tricky.