USD/JPY: Long-term resistance above 110.00
Yesterday’s signals were not triggered as there was no bearish price action at 109.74.
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 Ideas
Short entry following a bearish price action reversal on the H1 time frame immediately upon the next touch of 110.07 or 110.69.
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 109.74 or 109.25.
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 we may get a bearish retracement at or near to 110.00, but after that, I would be very interested to take a long trade from a bullish bounce at the new probably flipped support level at 109.24. I was generally bullish up to 110.00.
This was a good call as it reflected what happened yesterday as risk sentiment continued to improve, and stock markets rose to new all-time high prices.
The price here got very close to the big round number at 110.00 yesterday and then started to make what looks like being a bearish retracement from that area. This is still only a normal retracement, so we may have a chance here for a long trade entry following a bullish bounce at the new support at the former broken resistance level at 109.74.
There is good reason to remain bullish, but we are approaching a very pivotal multi-month high near 110.00 which is confluent with a big round number, and this resistance may well be too strong to break decisively in the near future.
The USD has reached a very pivotal moment both here and at 1.1000 in the EUR/USD currency pair, which strengthens the importance of both these pivotal areas in both pairs.
There is nothing of high importance due today regarding either the JPY or the USD.