USD/JPY Forex Signal: Bullish Above 106.22 – DailyForex.com

The pair made a bullish breakout to new multi-month high prices.

Today’s USD/JPY Signals

Risk 0.75%.

Trades must be entered before 5pm Tokyo time Tuesday.

Short Trade Ideas

  • Short entry following a bearish price action reversal on the H1 time frame immediately upon the next touch of 107.07, 107.24, or 107.43.

  • 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.

  • Take off 50% of the position as profit when the price reaches 20 pips in profit and leave the remainder of the position to run.

Long Trade Ideas

  • Long entry following a bullish price action reversal on the H1 time frame immediately upon the next touch of 106.22, 105.83, or 105.42.

  • 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.

  • Take off 50% of the position as profit when the price reaches 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.

Advertisement

The yen is a popular asset during turbulent times.

GBP/USD Analysis

After being in a long-term bearish trend which lasted for several months, recent weeks have seen the U.S. dollar begin to recover, and it made an especially strong bullish move last week, particularly at the end of the week when yields on the 10-year U.S. Treasury exceeded 1.5%, which is seen as a key benchmark by the market, as this is the current dividend yield of the S&P 500 Index.

The Japanese yen is the weakest major currency, and the recent rise in the greenback has expressed itself most clearly here, as the price broke bullishly beyond the round number at 106.00 and has continued to advance – albeit slowly and on relatively low volatility – to new multi-month high prices well above 106.00.

The odds favour a continuation of the bullish price movement, and there are no key resistance levels below 107.07, so the price has room right now to move up to hit the round number at 107.00 provided bulls are above the keep the price above the nearest support at 106.22.

I take a cautiously bullish bias here between 106.22 and 107.00 today.

USD/JPY chart

Concerning the USD, there will be a release of ISM Manufacturing PMI data at 3pm London time. There is nothing of high importance due today regarding the JPY.

Leave a Reply

Your email address will not be published. Required fields are marked *