USD/JPY: Long-term resistance above 110.00
Last Thursday’s signals were not triggered, as none of the key levels were reached that day.
Today’s USD/JPY Signals
Risk 0.75%.
Trades may only be entered between 8am New York time Monday and5pm Tokyo time Tuesday.
Short Trade Ideas
Go short following a bearish price action reversal on the H1 time frame immediately upon the next touch of 110.07 or 110.69.
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 109.54, 109.25, or 108.99.
Put the stop loss 1 pip below the local swing low.
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.
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 Thursday that there was good reason to remain bullish, but I also noted that we were approaching a very pivotal multi-month high near 110.00 which was confluent with a big round number, and this resistance may well be too strong to break decisively in the near future.
This was a good call, as the price has held up in this area bullishly, but ultimately (at least so far) the bulls could not push the price to break above the resistance area which starts at 110.00.
The picture is just a little more bearish now, with the nearest support lower than it was before at 109.54.
There are likely to be better opportunities in the other major currency pairs until we see a decisive bullish break here to new highs above 110.07.
There is nothing of high importance due today regarding either the JPY or the USD. It is a public holiday in Japan today.