USDJPY: Japanese Yen remains strong but may be topping out
Yesterday’s signals were not triggered as none of the key levels were ever reached.
Today’s USD/JPY Signals
Risk 0.75%.
Trades must be entered from 8am New York time Thursday until 5pm Tokyo time Friday.
Short Trade
Go short following a bearish price action reversal on the H1 time frame immediately upon the next touch of 110.29.
Put the stop loss 1 pip above the local swing high.
Adjust the stop loss to break even once the trade is 20 pips in profit.
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
Go long following a bullish price action reversal on the H1 time frame immediately upon the next touch of 109.07 or 108.73.
Put the stop loss 1 pip below the local swing low.
Adjust the stop loss to break even once the trade is 20 pips in profit.
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 action here was starting to look more bearish over the short term.
I was ready to take a bearish bias later if the price could spend two hours below 109.07, or if there was a failure at a test of 110.29. Neither of these scenarios played out.
Although I was more bearish yesterday, it seems that the price is bottoming out above the support just above 109.00. I think now that if the price can get established above 109.80, it would be much more likely to rise to make another attempt at 110.29, which could provide a potentially excellent long trade entry.
There is nothing of high importance due today concerning either the JPY or the USD.