USD/JPY Forex Signal | DailyForex

  


USDJPY: More bullish above 109.10 

 

Yesterday’s signals were not triggered, as there was no bearish price action when 109.10 was reached during the Tokyo session.

Today’s USD/JPY Signals

Risk 0.75%.

Trades may only be taken between 8am New York time Tuesday and 5pm Tokyo time Wednesday. 

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.

⦁ 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

⦁ Go long following a bullish price action reversal on the H1 time frame immediately upon the next touch of 109.10, 108.82, 108.65, or 108.30.  

⦁ 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.

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USD/JPY Analysis

I wrote yesterday that bulls could still hope for another strong move up here, as long as it happened before the end of the next Tokyo session. Bulls should then have wanted to see the Tokyo session end above 109.21 to have confidence that such a bullish movement would be likely to continue. Above 109.10 would also be bullish, but less so.

This was a good call as we have had this upwards move and Tokyo ended above 109.21. The price peaked a few hours ago above 109.21 and is falling from there. It is not clear that what is now support at 109.10 will hold.

There may be a chance for a long trade following a bullish bounce when 109.10 is next reached, if it happens during the New York session. If the price gets established below that level, it would suggest a less bullish outlook.

Overall, if the price is not above 109.28 when New York closes later today, I will put aside my generally bullish bias on this pair, at least temporarily.USDJPYThere is nothing of high importance due today concerning either the JPY or the USD. 



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