USD/JPY Forex Signal: Flat Consolidation

  


USD/JPY: Little to choose between these two currencies

Yesterday’s signals were not triggered, as none of the key levels were reached.

Today’s USD/JPY Signals

Risk 0.75%.

Trades must be taken between 8 am New York time Wednesday and 5 pm Tokyo time Thursday.

  • Short entry following a bearish price action reversal on the H1 time frame immediately upon the next touch of 107.76, 107.87, or 108.23.
  • Put 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.
  • 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

  • Long entry following a bullish price action reversal on the H1 time frame immediately upon the next touch of 107.29 or 106.80.
  • Put 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.
  • 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.

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The yen is a popular asset during turbulent times.

USD/JPY Analysis

I wrote yesterday that it was quite likely that either of the resistance levels at 107.87 or 107.76 were going to hold over the day. I was right about that, in fact, over the last 24 hours or so we have not even seen the price touch any key level.

The price chart below shows that this pair is in a very flat, stable consolidation pattern, which is currently holding between 107.29 and 107.63. This is likely to continue today and as long as it does, it will be hard to trade this pair unless you are scalping reversals from these levels for a few pips. A better approach will probably be to wait for a breakout from this range to be confirmed, then trade the breakout.

I have no directional bias on this currency pair today and I think it will be better to trade other major pairs.

USD/JPY

There is nothing of high importance scheduled today regarding either the JPY or the USD.



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