USDJPY: more bullish
Yesterday’s signals were not triggered as none of the key levels were reached during the specified time.
Today’s USD/JPY Signals
Risk 0.75%.
Trades must be taken from 8am New York time Thursday until 5pm Tokyo time Friday.
Short Trades
Go short following a bearish price action reversal on the H1 time frame immediately upon the next touch of 109.81 or 110.11.
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.
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 H1 time frame immediately upon the next touch of 109.43 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.
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
I wrote yesterday that I saw 109.00 as a very key pivotal point, and I would take a bearish bias if the price could trade below that level for a couple of hours consecutively later today. This was a good call as the price never traded below 109.00 and rose after reaching the area near that support and round number.
It was interesting to see this pair rose even as stocks sold off, usually weak stock markets boost the Yen. However there has now been a recovery in stocks and in recent hours this pair has made a fairly strong bullish push, which seems to maybe be running out of momentum as it approaches 109.81.
There is no long-term trend here, and this pair has been difficult to trade, but it seems that if the price can get established above the next two resistance levels (i.e. above 110.11), it would be a bullish sign, so I would take a bullish bias later if that happens.
There is nothing important due today concerning the JPY. Regarding the USD, there will be a release of Preliminary GDP data at 1:30pm London time.