USDJPY: More bullish above 108.11
Yesterday’s signals were not triggered, as there was no bearish price action at either 108.06 or 108.28.
Today’s USD/JPY Signals
Risk 0.75%.
Trades may only be entered before 5pm Tokyo time Thursday.
Short Trade Ideas
Short entry following a bearish price action reversal on the H1 time frame immediately upon the next touch of 108.43 or 108.73.
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 Trade Ideas
Long entry following a bullish price action reversal on the H1 time frame immediately upon the next touch of 108.11 or 107.50.
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
I wrote yesterday that if the price took out the lows and reached at least to 107.70 with above-average momentum, I thought that another test of 107.50 was likely, but this level was probably still strong support, so the downside may well be limited.
In fact, the price never broke the lows to reach 107.70, and instead broke bullishly above the former resistance level at 108.06 which is now likely to be support.
There is not a lot of action here, and there is a weak long-term bearish trend, but if the support at 108.11 holds today, that will be a sign that we will be a little more likely to see higher prices than lower ones over the near future.
I take no firm directional bias on this currency pair today.
There is nothing of high importance due today regarding either the JPY or the USD.