(MENAFN- Daily Forex) Yesterday's signals were not triggered, as none of the key levels were reached during the specified time.
Today's USD/JPY Signals Risk 0.75%.
Trades may only be entered before 5pm Tokyo time, during the next 24-hour period.
Short Trades
Go short following a bearish price action reversal on the 1H1 time frame H1H1H1 time frame immediately upon the next touch of 111.50 or 111.86. 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. 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
Go long following a bullish price action reversal on the 1H1 time frame H1H1H1 time frame immediately upon the next touch of 110.86. 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. 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. USD/JPY Analysis I wrote yesterday that I would take a bullish bias if the price could get established above 111.25. I also said that as there was no real long-term trend here, so it was a good idea to be conservative with profit-taking. This was a great call, although the action came a little late, with the price not breaking above 111.25 until right at the end of the Asian session. However, it did produce a strong upwards movement to the next resistance at 111.50, where the price seems to have stalled after forming a small bearish pin candlestick. This level looks pivotal, but it may still break. If the price cannot get above it during the next few hours, we will probably see a movement back down to 111.00 during the Asian session or earlier in the New York session. If it does break above 111.50 soon, that will be a bullish sign, and the price should go on to reach 111.86, so I would take a bullish bias in that case.
There is nothing important due today concerning the JPY. Regarding the USD, there will be a release of ISM Manufacturing PMI data at 3pm London time.
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