USD/JPY Forex Signal
|Yesterday's signals were not triggered, as there was insufficiently bullish price action at 110.80 although it eventually acted as good support.
Today’s USD/JPY Signals
Risk 0.75%.
Trades may only be taken 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 111.86.
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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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Remove 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 110.80 or 110.55.
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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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Remove 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.
USD/JPY Analysis
I wrote yesterday that the price was in a wide medium-term bearish channel, yet it remained difficult to forecast any larger movements in this pair, as action was quite congested. I did expect the support at 110.80 to be strong if it is reached, and I was correct about that. The technical picture today is unchanged, the price remains in a bearish channel, and the support at 110.80 is still valid. The most that can be said now is that at the time of writing, there is short-term bullish momentum, with the Yen falling faster than any other currency, and that a break above the support trend line currently sitting at about 111.40 would be a bullish sign.
There is nothing important due today concerning the JPY. Regarding the USD, there will be a release of PPI data at 1:30pm London time.
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