USDJPY: Close to long-term bullish breakout beyond 110.00
Last Thursday’s signals were not triggered, as none of the key levels were reached that day.
Today’s USD/JPY Signals
Risk 0.75%.
Trades may only be entered between 8am New York time Monday and 5pm Tokyo time Tuesday.
Short Trade Ideas
Go short following a bearish price action reversal on the H1 time frame immediately upon the next touch of 109.96 or 110.69.
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 109.18 or 109.00.
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 last Thursday that I expected still higher prices but thought that we may well see another bearish failure before 110.00 is broken. This was a good call as it accurate reflected what has happened since.
The picture is even more bullish now and the price at the time of writing is getting closer to the resistance at 109.96 which is very confluent with the important psychological level and round number at 110.00.
This level has been solid, strong resistance for a very long time is probably defended by some bank or banks which have written options at 110.00, yet with the return of risk-on sentiment it may be that we finally get a major long-term breakout here above 110.00 which would be a very bullish sign.
I will take a strongly bullish bias when we get a New York close above 110.00 but I am generally looking to enter long trades at bullish bounces at any identified support level anyway.
There is nothing of high importance due today regarding either the JPY or the USD.