USDJPY: Long-term bullish breakout
Yesterday’s signals were not triggered, as there was no bearish price action at 109.48.
Today’s USD/JPY Signals
Risk 0.75%.
Trades may only be entered between 8am and 5pm Tokyo time Friday.
Short Trade Ideas
⦁ Short entry following a bearish price action reversal on the H1 time frame immediately upon the next touch of 109.48 or 109.96.
⦁ 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 or 108.74.
⦁ Put 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 picture still looked weakly bullish, but the low volatility should be a concern for bulls. If the price at the day’s New York close was above 109.28 I was ready to take a bullish bias, or a very bullish bias if it was above 109.48.
The close was just a little below 109.48, so I’ve taken a bullish bias. However, the price is very quiet now due to the U.S. holiday, but action should pick up later once Tokyo opens.
I am a little worried that the level at 109.48 seem to be holding again at resistance, but I have to take a bullish bias here as we have had a significant bullish technical breakout.
Traders entering freshly into this situation would probably be best advised to take a bullish bias if the price can get established above 109.50 over the first hour or two of the Tokyo session later. However, traders should strongly consider being ready to take profit at the big round number of 110.00 if and when it is reached.
There is nothing of high importance due today concerning the JPY or the USD. It is a public holiday today in the U.S.A.