(MENAFN- Daily Forex) USD/JPY: Long-term resistance 110.07/30
Yesterday's signals were not triggered, as none of the key levels have been reached.
Today's USD/JPY Signals
Risk 0.75%.
Trades must be taken from 8am New York time Tuesday to 5pm Tokyo time Wednesday.
Short Trade Ideas
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Short entry following a bearish price action reversal on the H1 time frame immediately upon the next touch of 110.07 or 110.69.
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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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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
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Long entry following a bullish price action reversal on the H1 time frame immediately upon the next touch of 109.54, 109.25, or 108.99.
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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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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 yesterday that as the bulls had been unable to push the price above the key round number at 110.00, the picture had become a little more bearish now, with the nearest support lower than it was before at 109.54.
I thought that there were likely to be better opportunities in the other major currency pairs until we saw a decisive bullish break here to new highs above 110.07.
This was a good call, as the price has continued to go sideways below 110.00.
I think the best approach is still to wait for a breakout above 110.07, in which case I would take a bullish bias. A long trade from a bounce following a retracement to 109.54 could also be a good trade. Concerning the USD, the Chair of the Federal Reserve will be testifying before Congress at 3pm London time. There is nothing of high importance due today regarding the JPY.
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