Today’s USD/JPY Signals
Risk 0.75%.
Trades may only be entered from 8am New York time until 5pm Tokyo time, during the next 24-hour period.
Short Trades
- Go short following a bearish price action reversal on the 1H1 time frame H1H1H1 time frame immediately upon the next touch of 111.70 or 112.40.
- Place 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.
- Remove 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
- Go long following a bullish price action reversal on the 1H1 time frame H1H1H1 time frame immediately upon the next touch of 110.50.
- Place 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.
- Remove 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
The general trend in this pair will remain bullish if the pair remains stable at the 110.00 resistance level. The US dollar continues to prevail despite US-China trade war concerns. Policy differences between US Federal Reserve Bank, which supports more interest rate hikes, and the Japanese central bank, which is still far from any tightening in its policy, will remain a strong supporter of the pair's bullish move. I will buy this pair on bearish rallies.
There is nothing important due today concerning the USD. Regarding the JPY, there will be a release of Japanese GDP figures, current account and bank lending rate.