USDJPY: 108.14 still holding as support
Yesterday’s signals were not triggered, as none of the key levels were reached yet.
Today’s USD/JPY Signals
Risk 0.75%.
Trades must be entered from 8am New York time Monday to 5pm Tokyo time Tuesday.
Short Trades
Go short following a bearish price action reversal on the H1 time frame immediately upon the next touch of 108.75 or 109.07.
Put the stop loss 1 pip above the local swing high.
Move 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 run.
Long Trades
Go long following a bearish price action reversal on the H1 time frame immediately upon the next touch of 108.14, 107.94, or 107.50.
Put the stop loss 1 pip below the local swing low.
Move 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 run.
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 the technical picture had more bullish as the price has become established above 108.16, which I had thought would be an important level. I was prepared to take a bullish bias if we had seen a firm bullish bounce at any of the nearby support levels, but this did not happen: the price moved little over the day. Buyers have kept the price above support, but as the medium-term environment is seeing a ranging pattern, it would make sense to take either a long or short trade from a solid reversal at any support or resistance level which is reached during today’s New York session, although profits should probably be taken conservatively – don’t hope for too much here. On the other hand, there is a chance that if the U.S. stock market sells off strongly today, the weekend gap here could get filled, and a firm break below 107.94 could see a surprising and sudden move down to 107.50.
There is nothing of high importance due today regarding either the JPY or the USD.