USD/JPY Forex Signal
|Yesterday’s signals were not triggered, as there was no bearish price action at 110.52.
Today’s USD/JPY Signals
Risk 0.75%.
Trades may only be taken from 8am New York time Monday to 5pm Tokyo time Wednesday.
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 111.46.
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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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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 Trade
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Go long following a bullish price action reversal on the 1H1 time frame H1H1H1 time frame immediately upon the next touch of 110.04.
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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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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 picture was looking more bullish as were finally seeing a breakout above the resistance which was centred upon 110.00 over several days. The rise looked healthy so far and could well reach the next resistance level at 110.52. I therefore took a cautiously bullish bias. This was a good call, as the price continued to rise over the past 24 hours, even exceeding the next resistance level at 110.52, which has now probably become higher support.
The picture is still bullish, we have seen a steady rise in this pair over the past 20 days or so, admittedly mostly on relatively low volatility. I remain cautiously bullish if the support at 110.52 can hold and the price can break to new highs above 110.65.
There is nothing of high importance due today regarding the JPY. Concerning the USD, the Chair of the Federal Reserve will be making a minor speech at 5:45pm London time.
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