USD/JPY: Yen getting weaker over time
Yesterday’s signals were not triggered, as none of the key levels have been reached yet.
Today’s USD/JPY Signals
Risk 0.75%.
Trades may only be taken between 8am New York time Wednesday and 5pm Tokyo time Thursday.
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 yesterday that we still had a bullish consolidation in this currency pair. I saw the USD as likely to strengthen further over the medium term, so I continued to take a weakly bullish bias if the price bounced at any of the identified support levels.
This was a good call as the bullish consolidation has continued, with the 111.50 price area continuing to hold. A little bit higher just above 112.00 we have long-term high prices.
Volatility here is still relatively low but we may be close to a tipping point, with either a stronger bullish movement about to start or a major bearish reversal.
I think the price is most likely to continue to rise, but I would take trades in either direction from a reversal at a key level. Long trades probably have a slightly higher chance of success.
There is nothing of high importance scheduled for today concerning either the JPY or the USD.