USD/JPY Forex Signal
|Yesterday's signals were not triggered, as there was no bearish price action at either 111.41 or 111.75.
Today’s USD/JPY Signals
Risk 0.75%.
Trades may only be entered between 8am New York time and 5pm Tokyo time, during the next 24-hour period.
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 113.13.
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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 run.
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 112.06 or 111.75.
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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 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 I considering the recent strongly bullish move to new highs, and the weak but real long-term bullish trend, I took a bullish bias expected that we would be likely to see new highs after the New York open. This was correct, and this pair is very bullish and is also the major focus of the market right now. The price is making a new 6-month high which is always a good sign for bulls. The only possible obstacles I see for still higher prices are the psychological level at 112.50 and the fact that there is a very important piece of U.S. inflation data due later which might push the price strongly in an unexpected direction.
There is nothing due today concerning the JPY. Regarding the USD, there will be a release of CPI data at 1:30pm London time.
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