USDJPY: More bullish above 109.20
Yesterday’s signals were not triggered, as there was insufficiently bearish price action when the resistance level at 109.13 was reached.
Today’s USD/JPY Signals
Trades must be taken from 8am New York time Wednesday until 5pm Tokyo time Thursday.
Short Trade Ideas
⦁ Go short following a bearish price action reversal on the H1 time frame immediately upon the next touch of 109.48 or 109.96.
⦁ Put the stop loss 1 pip above the local swing high.
⦁ Move 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 Trade Ideas
⦁ Go long following a bullish price action reversal on the H1 time frame immediately upon the next touch of 108.82, 108.74, or 108.27.
⦁ 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.
I wrote yesterday that another retest of the pivotal zone above 109.48 looked more likely to happen in the near future. The outlook was marginally bullish and key levels are tending to be respected.
This was a pretty good call as the price has continued to move up. It now threatens 109.20 and the key resistance level at 109.48.
The situation still looks weakly bullish, but the low volatility should be a concern for bulls. If the price at today’s New York close is above 109.28 I would take a bullish bias, or a very bullish bias if its above 109.48.
In the meantime, I would be prepared to take a long trade if we get a solid bullish bounce at the nearest support level at 108.82 later.There is nothing of high importance due today concerning the JPY. Regarding the USD, there will be a release of Chicago PMI data at 2:45pm London time.