USD/JPY: Dollar stronger safe haven than Yen
Last Thursday’s signals were not triggered, as there was no bearish price action at any of the resistance levels which were reached.
Today’s USD/JPY Signals
Risk 0.75%.
Trades may be taken 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 111.82, 112.40, or 112.93.
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
Go long following a bullish price action reversal on the H1 time frame immediately upon the next touch of 109.49 or 108.50.
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 last Thursday that the USD continues to strengthen while the Japanese Yen comes under some pressure as the Bank of Japan floats the possibility of a stimulus. There is also increasing concern that the coronavirus situation in Japan may be worse than was thought. So, although the price is still well within its range of recent weeks, it is seeing an increasingly bullish trend, although this is not as strong as we are seeing in other USD currency pairs.
I was ready to take a bullish bias on this pair if we had gotten a retracement and bullish bounce at any of the nearby support levels.
This was a good call and a good analysis which continues to hold true.
The USD is king, everywhere, very clearly. Although the Japanese Yen has tended to strengthen during crisis periods in recent years, at the moment this is not really happening, although the Yen is stronger than most other currencies, so it holds true to some extent.
I think it is not wise to be short the USD these days against anything, so I expect this weak bullish trend to continue here, and I would be prepared to take long trades from any firm bullish bounces at any support level which may be reached.
There is nothing of high importance scheduled today regarding either the JPY or the USD.