SIGNAL FOREX

USD/JPY Forex Signal: Weakly Bullish – DailyForex.com


USD/JPY: 106.00 area remains pivotal

Yesterday’s signals were not triggered although the high of the day was just a fraction below the resistance level identified at 105.81.

Today’s USD/JPY Signals

Risk 0.75%.

Trades may only be taken from 8 am New York time Wednesday until 5 pm Tokyo time Thursday.

  • Go short following a bearish price action reversal on the H1 time frame immediately upon the next touch of 105.81, 106.07, or 106.50.
  • 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

  • Go long following a bullish price action reversal on the H1 time frame immediately upon the next touch of 105.20, 104.87, or 104.37.
  • 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.

Advertisement

The yen is a popular asset during turbulent times.

USD/JPY Analysis

I wrote yesterday that a continuation of the bullish movement looked like the most likely scenario, although the price was close to the 106.00 which may act as relatively strong resistance due to the confluence of the round number, another bearish trend line, and a horizontal resistance level at 106.07.

I was looking for the price to make two consecutive hourly closes above 106.07 which did not happen.

I think this was a good call, as the price has continued to consolidate below the 106.00 while still looking capable of rising higher.

Later today we will being to get data related to Friday’s non-farm payroll data which is likely to be the key event that drives the market this week, so we can expect a lot of price movement on Friday.

It is worth keeping an eye on this currency pair today and seeing whether the price can break above 106.07. I am again ready to take a long trade if we get two consecutive hourly closes above 106.07 after New York opens as it would be a bullish sign.

USD/JPY

Regarding the USD, there will be a release of ADP Non-Farm Employment Change data at 1:15 pm London time followed 15 minutes later by Final GDP numbers. There is nothing of high importance scheduled today concerning the JPY.

Let’s block ads! (Why?)


Scalping Strategy Course (DVD + Online) - $299.00

In the much anticipated Forex Scalping Strategy Course, Vic and Sarid show you short-term focused techniques and strategies to make quicker profits while reducing market exposure.




Forexmentor Coach's Corner First Month (Online) - $149.00

The Coach's Corner offers 2 live sessions per week, an integrated approach to trading, FREE access to the VicTrade video course and Darko's Pattern Trading Video Lessons.



Source link

Have your say