USD/JPY Forex Signal | DailyForex

USDJPY: Bullish break above 108.15

Last Thursday’s signals were not triggered, as there was no bullish price action at 107.90.

Today’s USD/JPY Signals

Risk 0.75%.

Trades must be entered from 8am New York time Monday to 5pm Tokyo time Tuesday.

Short Trades

  • Go short following a bearish price action reversal on the H1 time frame immediately upon the next touch of 108.75 or 109.07.

  • 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 Trades

  • Go long following a bearish price action reversal on the H1 time frame immediately upon the next touch of 108.14, 107.94, or 107.50.

  • 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.

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USD/JPY Analysis

I wrote last Thursday that it was beginning to look as if 108.16 was going to be more significant as it and that if the price could get established above 108.16 that would be a significant sign of increasing bullishness, while a sustained break below 107.90 (107.50 would be even better) should indicate bears were in charge. This wasn’t a bad call as the break of 107.90 did herald lower prices and also the fact that 107.50 held was a bullish sign.

The technical picture is more bullish now as the price has become established above 108.16, which I had thought would be an important level. However, this pair is still in a long-term bearish trend. The rise in the U.S. stock market to new all-time highs will also probably keep the Dollar strong against the Yen. For these reasons, I am prepared to take a bullish bias today if we get a firm bullish bounce at any of the nearby support levels.USD/JPY Forex Signal | DailyForexThere is nothing of high importance due today regarding the JPY. Concerning the USD, there will be a release of ISM Manufacturing PMI data at 3pm London time.

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