Last Thursday’s signals were not triggered as none of the key levels were quite reached, but the low of the day was only 1 pip above the nearest support level identified at 109.59.
Today’s USD/JPY Signals
Risk 0.75%.
Trades must be entered between 8am New York time Monday and 5pm Tokyo time Tuesday.
Short Trade
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Short entry following a bearish price action reversal on the H1 time frame immediately upon the next touch of 110.52.
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Place the stop loss 1 pip above the local swing high.
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Move 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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Long entry following a bullish price action reversal on the H1 time frame immediately upon the next touch of 110.04 or 109.59.
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Place the stop loss 1 pip below the local swing low.
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Move 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 last Thursday that the big round number of 110.00 was likely to again be the pivotal area today, but I had no directional bias. This was a good call as the price continued to fall after rejecting the level earlier, before finding support just a pip above the nearest support level.
The picture now is looking more bullish as we finally are seeing a breakout above the resistance which was centred upon 110.00 over several days. The rise looks healthy so far and could well reach the next resistance level today at 110.52. I have a cautiously bullish bias above 110.04 and below 110.50 today. There is no long-term trend, which is why I am cautious – much could depend upon the performance of the U.S. stock market when it opens affecting this pair (bullish stocks = bullish USD/JPY).
There is nothing of high importance due today regarding the JPY or the USD.
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