USDJPY: Bullish above 108.63
Yesterday’s signals were not triggered, as there was no bearish price action at 108.75.
Today’s USD/JPY Signals
Risk 0.75%.
Trades must be taken before 5pm Tokyo time Wednesday.
Short Trade Ideas
Go short following a bearish price action reversal on the H1 time frame immediately upon the next touch of 109.07 or 109.48.
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 Trade Ideas
Go long following a bullish price action reversal on the H1 time frame immediately upon the next touch of 108.63 or 108.28.
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 although we had a ranging, trendless environment in this currency pair, between about 107.50 and 108.75, I was more inclined to be bullish on this pair, so I saw bounces at support levels as likely to be the best option.
This was a good call as the price has risen further over the past day in line with my expectation, breaking above 108.75 which I thought would be a bullish sign. However, the resistance at 109.07 could also be strong so a short trade following a bearish strong failure there could also be a good trade set-up.
I take a weakly bullish bias above 108.63 and a bullish bounce there could also be a good trade, on the long side.
There is nothing of high importance due today regarding the JPY. Concerning the USD, the Chair of the Federal Reserve will be making a minor speech at 1:45pm London time.