By: DailyForex.com
Yesterday’s signals were not triggered, as unfortunately the low of the day was two pips higher than the nearest support level of 109.45.
Today’s USD/JPY Signals
Risk 0.75%.
Trades must be entered between 8am New York time and 5pm Tokyo time, over the next 24-hour period.
Short Trades
* Short entry following a bearish price action reversal on the H1 time frame immediately upon the next touch of 110.40, 110.58, or 110.86.
* Put the stop loss 1 pip above the local swing high.
* Adjust the stop loss to break even once the trade is 20 pips in profit.
* Take off 50% of the position as profit when the trade is 20 pips in profit and leave the remainder of the position to ride.
Long Trades
* Long entry following a bullish price action reversal on the H1 time frame immediately upon the next touch of 109.45 or 109.07.
* Put the stop loss 1 pip below the local swing low.
* Adjust the stop loss to break even once the trade is 20 pips in profit.
* Take off 50% of the position as profit when the trade is 20 pips in profit and leave the remainder of the position to ride.
The best method to identify a classic “price action reversal” is for an hourly candle to close, such as a pin bar, a doji, an outside or even just an engulfing candle with a higher close. You can exploit these levels or zones by watching the price action that occurs at the given levels.
USD/JPY Analysis
I wrote yesterday that I was weakly bullish above 110.00 and strongly bullish above 110.59. This major level has acted quite accurately as a dividing point, and now we are seeing the price starting to creep above 110.00 it is a bullish sign, in line with the medium to long-term trend. However, I do not have much faith in it as the action just does not feel strong here, and because there is a cluster of resistance levels between 110.40. A break above this cluster would be a very bullish sign. I have a weakly bullish bias above 110.00 and below 110.40.
There is nothing due today concerning the JPY. Regarding the USD, there will be a release of Crude Oil Inventories data at 3:30pm London time.