USDJPY: Consolidation between 105.86 and 106.73 still ongoing
Yesterday’s signals produced a profitable long trade from the bullish price action which rejected the support level at 105.86.
Today’s USD/JPY Signals
Risk 0.75%.
Trades must be taken 5pm Tokyo time Thursday.
Short Trade Ideas
Short entry following a bearish price action reversal on the H1 time frame immediately upon the next touch of 106.73 or 107.21.
Place 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.
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 Trade Ideas
Long entry following a bullish price action reversal on the H1 time frame immediately upon the next touch of 106.09, 105.86 or 105.57.
Place 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.
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 yesterday that the situation was a consolidation between 105.86 and 106.73 with both levels looking strong and likely to hold.
I was looking to fade any of the three key levels if there was a valid reversal at any of them.
This was a good call as it accurate predicted the bounce at 105.86 and produced a long trade entry from there which was mildly profitable.
The consolidation persists and is like to continue today, but the technical picture will begin to look more bullish if the support level at 106.09 can hold today.
There is nothing of high importance due today concerning either the JPY or the USD.