USDJPY: Weakly bullish above 108.00
Yesterday’s signals were not triggered, as none of the key levels were reached within the specified time.
Today’s USD/JPY Signals
Risk 0.75%.
Trades may only be entered from 8am New York time Wednesday and 5pm Tokyo time Thursday.
Short Trade Idea
Short entry following a bearish price action reversal on the H1 time frame immediately upon the next touch of 108.48.
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 107.99 or 107.79.
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 the price was now getting established above 108.15 which was a bullish sign.
I thought that price would be likely to rise to reach the next resistance level at 108.48. In fact, the price hardly rose any more at all, instead distributing and selling from about 108.25. There is not a lot of movement here, but the price is still above the major support and round number at 108.00. If this holds over the coming hours, the price will be more likely to rise than to fall, but margins are tight and this pair is not in focus right now, so it may be preferable to avoid trading this currency pair.
There is nothing of high importance due today regarding either the USD or the JPY.