USDJPY: More bullish above 109.52 but resistance up to 110.00
Last Monday’s signals were not triggered, as none of the key levels were reached that day.
Today’s USD/JPY Signals
Risk 0.75%.
Trades must be taken from 8am New York time Thursday until 5pm Tokyo time Friday.
Short Trade Idea
Short entry following a bearish price action reversal on the H1 time frame immediately upon the next touch of 109.96.
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 109.52 or 108.96.
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 last Monday that I thought it wise to sit tight on this pair for the time being and wait for the price to get to 109.70 and either succeed or fail to break it, although a bearish reversal close to 109.50 might also give a profitable short trade entry. I also thought that this would probably not happen until Thursday or Friday at the earliest.
This was a good call as both of these scenarios are still valid, so it was wise to wait.
The price has started today breaking up above the former resistance at 109.52 which is a bullish sign. However, I want to see a New York daily close above 109.70 or ideally 110.00 before becoming seriously bullish. The possibility of a major bearish reversal in this area remains strong so this entire pivotal zone is still in play. Being patient and attentive is likely to pay off here eventually.
Today it seems the level at 109.52 may have become support, so traders can try for a long trade entry from here but be careful.
There is nothing of high importance due today regarding either the JPY or the USD.