USDJPY: Bullish breakout above 110.00 in doubt
Yesterday’s signals were not triggered, as none of the key levels were ever reached.
Today’s USD/JPY Signals
Risk 0.75%.
Trades may only be entered between 8am New York time Wednesday and 5pm Tokyo time Thursday.
Short Trade Idea
Go short following a bearish price action reversal on the H1 time frame immediately upon the next touch of 109.95.
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 yesterday that I was bullish as long as the price continued to mostly trade above 109.96 and I expected higher prices later. I think this was the right approach on the balance of probabilities, but it seems to have not turned out well, with the price now seeming to be respecting 109.95 as new resistance now. However, volatility is very low and there is little movement, so we may well see a stronger rise later.
The odds are still in favour of higher prices, but I think if we get a break below 109.75 the price could quickly fall still further before finding support.
I would take a bullish bias if the price can close above 110.00 for two consecutive hours after the New York open.
There is nothing of high importance due today regarding the JPY or the USD.