USDJPY: Bullish break above 108.15
Yesterday’s signals were not triggered as there was no bearish price action at 108.02 or 108.15.
Today’s USD/JPY Signals
Risk 0.75%.
Trades must be taken between 8am New York time Tuesday and 5pm Tokyo time Wednesday.
Short Trade Idea
Go short following a bearish price action reversal on the H1 time frame immediately upon the next touch of 108.48.
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.
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 107.99 or 107.79.
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.
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 we had a bearish double top forming at 108.02 which was confluent with the upper trend line of the bearish price channel. I also noted that alternatively, if the price could turn bullish and get established above 108.15 later it would conversely be a bullish sign.
The price only fell by about 20 pips from the resistance at 108.02 before turning more bullish, and the price is now getting established above 108.15 which is a bullish sign.
As we now see a breakout above the former key resistance at 108.15, we have a mildly bullish sign, with the price having room to rise until 108.48.
There is nothing of high importance due today regarding either the USD or the JPY.