USDJPY: Pivotal area from 108.00 to 109.00
Last Thursday’s signals produced a losing short trade from the bearish rejection of 107.63.
Today’s USD/JPY Signals
Risk 0.75%.
Trades must be taken from 8am New York time Tuesday to 5pm Tokyo time Wednesday.
Short Trade Ideas
- Short entry following a bearish price action reversal on the H1 time frame immediately upon the next touch of 108.71 or 109.00.
- 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.
- 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 1H1 time frame immediately upon the next touch of 108.07, 107.78, or 107.63.
- 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.
- 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
Last Thursday I was looking for a bearish reversal at 107.63 but I noted that the USD-related data release might have unpredictable consequences. It did – pushing the price up to the area of long-term resistance at multi-week highs between 108.00 and 109.00. This is an area of very key resistance and as such it is a major pivotal area.
If the price can advance to get established above 109.00 that would be a very bullish sign.
It looks as if the price will fall now to test 108.07 and how it reacts above 108.00 is likely to tell us something.
I will take a bullish bias on this currency pair if we get a firm bullish bounce at a first touch of 108.07 later today.
There is nothing of high importance due today concerning either the JPY or the USD.