(MENAFN- Daily Forex) Yesterday's signals were not triggered, as there was no bullish price action at 113.56.
Today's USD/JPY Signals
Risk 0.75%.
Trades must be taken between 8am New York time and 5pm Tokyo time, over the next 24-hour period only.
Short Trade
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Go short following a bearish price action reversal on the H1 time frame immediately upon the next touch of 113.56 or 114.18.
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Place the stop loss 1 pip above the local swing high.
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Adjust the stop loss to break even once the trade is 20 pips in profit.
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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
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Go long following a bullish price action reversal on the H1 time frame immediately upon the next touch of 113.05.
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Place the stop loss 1 pip below the local swing low.
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Adjust the stop loss to break even once the trade is 20 pips in profit.
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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 as the odds were slightly biased in favour of bulls, due to the slight long-term trend, so I would take a bullish bias if the price could trade above the resistance level at 114.18 for a couple of hours. The price never reached the resistance level at 114.18 and has created new resistance at 113.66. The fact that stock markets are falling again has produced some strength in the Japanese Yen which is making the picture look more bearish, or it would be more accurate to say, not bullish despite the weak long-term bullish trend. I have no bias now and would be prepared to see any strong reversal from any key level as a good potential entry. Keep in mind volatility in this pair remains low so targets should probably be modest.
There is nothing important due today concerning the JPY. Regarding the USD, there will be a release of Retail Sales data at 1:30pm London time, and the Chair of the Federal Reserve will be giving a minor speech at 4:30pm.
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