USD / JPY Forex signal: the two currencies are correlated, so little movement is expected – DailyForex.com

USD / JPY: consolidation between 108.62 and 109.19

Signals from yesterday were not triggered as the upward price action at 108.61 was too slow to give a long signal to trade.

USD / JPY signals of the day

Risk 0.75%.

Exchanges must be entered from 8 a.m. New York time, Thursday until 5 p.m. Tokyo time, Friday.

Short business ideas

• Short entry following a reversal of the downward price action on the time frame 1H1 H1H1H1 immediately after the next touch of 109.23 or 109.59 or 110.08.
• Put the stop loss 1 pip above the top local swing.
• Adjust the stop loss to break even once the trade has 20 pips of profit.
• Remove 50% of the position as profit when the trade is 20 pips in profit and let the rest of the position go up.

Long business ideas

• Long entry following a reversal of the upward price action over the time period 1H1 H1H1H1 immediately after the next key press of 108.61 or 108.21 or 107.80
• Put the stop loss 1 pip below the bottom local swing.
• Adjust the stop loss to break even once the trade has 20 pips of profit.
• Remove 50% of the position as profit when the trade is 20 pips in profit and let the rest of the position go up.

The best method to identify a classic “price action reversal” is to close a candle every hour, such as a pin bar, a doji, an outside or even just a engulfing candle with a higher closure. You can exploit these levels or areas by observing the price action that occurs at the given levels.

USD / JPY analysis

I wrote yesterday that I expect the price of this currency pair to continue consolidating between 108.61 and 109.23 over the next 24 hours, so I would be ready to trade reversals of the currency. either level without long or short overall bias. It was a great call as he perfectly predicted what happened in this pair over the last day.

There is no reason to change this approach, because I think this consolidation model will continue even if we get employment data in the United States later. I think this consolidation is more likely to break tomorrow than today.

As I think this dominant consolidation model will continue, I would again look for inversions of each key level without any directional bias. Using shorter entry and exit times will probably be the best approach as the move is likely to be slight, with the USD and JPY showing a strong positive correlation in their relative values ​​these days.

Regarding the USD, there will be a release of unemployment claims at 1:30 p.m. London time. There is nothing very important today due to JPY.