USDJPY: More bullish above 108.82
Yesterday’s signals produced a short trade from the bearish reversal at 109.13. It is at present in slight profit, but I would close it out as it does not look likely to progress much further.
Today’s USD/JPY Signals
Risk 0.75%.
Trades may only be entered between 8am New York time Tuesday and 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 109.13 or 109.48.
⦁ 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.
⦁ 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
⦁ Long entry following a bullish price action reversal on the H1 time frame immediately upon the next touch of 108.82, 108.74, or 108.27.
⦁ 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.
⦁ 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 problem for anyone wishing to trade this pair was that price action was very choppy and congested, and volatility was extremely low, so the price was not moving much.
However, I thought that if the price got established above 108.86 over the first hour or so of the New York session, it had a good chance to hit at least 109.13. This was a good call and reflected what happened.
Another retest of the pivotal zone above 109.48 looks more likely to happen in the near future. The outlook is marginally bullish and key levels are tending to be respected.
I would take a bullish bias if we get a bullish bounce at either 108.82 or 108.73.
There is nothing of high importance due today concerning the JPY. Regarding the USD, there will be a release of CB Consumer Confidence data at 3pm London time.