USD/JPY Forex Signal
|Yesterday’s signals were not triggered, as none of the key levels were ever reached.
Today’s USD/JPY Signals
Risk 0.75%.
Trades may only be entered from 8am New York time Tuesday and 5pm Tokyo time Tuesday.
Short Trades
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Go short following a bearish price action reversal on the H1 time frame immediately upon the next touch of 112.09 or 112.65.
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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 rise.
Long Trade
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Long entry following a bullish price action reversal on the H1 time frame immediately upon the next touch of 111.46.
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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 rise.
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 would remain bullish provided 111.46 holds will wait for some kind of bullish V formation above 111.46. If the price broke above 112.10 later, it would be a strongly bullish sign.
This was a good call as the price made a weakly bullish V above 111.60 from where it has risen before showing an inability to break above 112.00 let alone 112.09, so I would sell or at least take the risk off any long trade I could be holding right away.
If the price cannot get established above 112.10 later today, I would be much less interested in being bullish, but if it does, we might see a strongly bullish move up to 112.65 or close to it, so I would become bullish in that event.
There is nothing of high importance due today concerning either the JPY or the USD.
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