USDJPY: Ranging between 108.25 and 109.00
Yesterday’s signals were not triggered, as none of the key support or resistance levels were reached.
Today’s USD/JPY Signals
Risk 0.75%.
Trades must be taken from 8am New York time Tuesday to 5pm Tokyo time Wednesday.
Short Trade Idea
Short entry following a bearish price action reversal on the H1 time frame immediately upon the next touch of 108.94.
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 108.27, 108.06, or 107.78.
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 I saw the best potential opportunity here as a long close to 108.27 if we got a firm bullish reversal at or close to that price. As it happened, the price moved little over the past day, and has not reached 108.27 yet.
The technical picture is unchanged, so I continue to take the same approach. As I said yesterday, much will depend upon the U.S. stock market which was unable to make new highs yesterday. The more stock markets are spooked by bad rumours or news concerning the U.S. / China trade deal negotiations, the more this currency pair is likely to move down as money flows into the Japanese Yen as a safe haven. The opposite is also true.
I would take a bullish bias today if we get a bullish bounce when 108.27 is first reached.
There is nothing of high importance due today concerning either the JPY or the USD.