USD/JPY Forex Signal
|Yesterday’s signals were not triggered, as the bullish price action took place several pips below the support level identified at 106.39.
Today’s USD/JPY Signals
Risk 0.75%.
Trades must be taken between 8am New York time and 5pm Tokyo time, over the next 24-hour period only.
Short Trade
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Go short following a bearish price action reversal on the H1 time frame immediately upon the next touch of 108.02.
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Place the stop loss 1 pip above the local swing high.
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Adjust the stop loss to break even once the trade is 20 pips in profit.
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Take off 50% of the position as profit when the trade is 20 pips in profit and leave the remainder of the position to ride.
Long Trades
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Go long following a bearish price action reversal on the H1 time frame immediately upon the next touch of 106.29 or 105.86.
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Place the stop loss 1 pip below the local swing low.
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Adjust the stop loss to break even once the trade is 20 pips in profit.
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Take off 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.
I wrote yesterday that the price was quite likely to consolidate now between 106.39 and 107.00 over the next 24 hours. I had no directional bias beyond that forecast. The price did spend most of the past day within that range, as it slowly sold off before bouncing strongly and bullishly at a slightly lower new support level of 106.39. There is nothing standing in the way of still higher prices except an old descending trend line which can be seen in the price chart below, currently sitting at about 107.11, within nothing beyond that except the key resistance level at 108.05. Despite the long-term bearish trend, there has been plenty of buying below 106.00 over recent months, and it looks as if buyers are going to drive this pair into an even deeper counter-trend movement. I have a bullish bias today on this pair.
There is nothing due today concerning the JPY. Regarding the USD, there will be a release of CPI data at 12:30pm London time.
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