USD/JPY Forex Signal
|Yesterday’s signals were not triggered, as none of the key levels were reached.
Today’s USD/JPY Signals
Risk 0.75%.
Trades must be taken from 8am New York time to 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 1H1 time frame H1H1H1 time frame immediately upon the next touch of 109.76.
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Put 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 bullish price action reversal on the H1 time frame immediately upon the next touch of 108.05.
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Put 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 had a bullish bias yesterday, due to the strong break above the former resistance level of 108.05 which had held for a long time. The price reached a new high of 109.20 before pulling back quite sharply but then rising again. However, the price has still not got back to its former high. There is no reason to stop being bullish, but the move up might well slow down now. There is no obvious strong support level below until 108.05, but 108.50 has been used as latent support by buyers so it might hold if the price falls back to it. The long-term bearish trend is technically over, with the price reaching levels above its price of three months ago.
There is nothing due today concerning the JPY. Regarding the USD, there will be a release of Crude Oil Inventories at 3:30pm London time.
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