USDJPY: Ranging between 108.25 and 109.00
Yesterday’s signals were not triggered, as none of the key levels were reached yet.
Today’s USD/JPY Signals
Risk 0.75%.
Trades must be taken from 8am New York time Thursday to 5pm Tokyo time Friday.
Short Trade Idea
Short entry following a bearish price action reversal on the H1 time frame immediately upon the next touch of 108.94.
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 108.27, 108.06, or 107.78.
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 price range between 108.25 and 109.00 continued to hold, but the FOMC release would probably cause a breakout.
This forecast was not harmful, but I was wrong. The price hardly moved following the release, while other USD currency pairs such as EUR/USD and AUD/USD saw much more price movement.
There is no long-term trend and the price is becalmed. This suggests that key support or resistance levels nearby are likely to hold and produce a bounce when next reached, so trading any reversal from a key level in either direction would be a logical approach here.
I take no directional bias on this currency pair today.
There is nothing of high importance due today concerning either the JPY or the USD.