USDJPY: More bullish above 109.28
Yesterday’s signals produced a losing long trade from the bullish pin bar which rejected the support level at 109.10.
Today’s USD/JPY Signals
Risk 0.75%.
Trades must be entered from 8am New York time Wednesday to 5pm Tokyo time Thursday.
Short Trade Ideas
⦁ Go short following a bearish price action reversal on the H1 time frame immediately upon the next touch of 109.48 or 109.96.
⦁ 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
⦁ Go long following a bullish price action reversal on the H1 time frame immediately upon the next touch of 108.82, 108.65, or 108.30.
⦁ 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
I wrote yesterday that there may be a chance for a long trade following a bullish bounce when 109.10 is next reached, if it happened during the New York session. If the price had gotten established below that level, it would suggest a less bullish outlook.
Overall, if the price was not above 109.28 when New York closed later today, I wanted to put aside my generally bullish bias on this pair, at least temporarily.
The price did not close above 109.28 yesterday and the long trade at 109.10 was a loser. However, the price may now at the time of writing be getting established above 109.10 again, suggesting that this level isn’t really pivotal any longer.
I still see potential for a long trade at any of the support levels below the current price, but until we get a New York close above 109.28, we are not seeing real bullish momentum here. It is quite probable that the U.S. inflation data due later today will provide the catalyst for the pair to make a more decisive move, so it is probably wise to stand aside until after that release is digested.
I will take a bullish bias at the end of the New York session if the price is above 109.28.
There is nothing of high importance due today regarding the JPY. Concerning the USD, there will be a release of CPI (inflation) data at 1:30pm London time, followed by testimony by the Chair of the Federal Reserve before Congress at 4pm.