USD/JPY Forex Signal: Bullish Consolidation – 25 March 2020

USD/JPY: Yen getting weaker over time

Fibo Quantum Scalper

Yesterday’s signals were not triggered, as none of the key levels have been reached yet.

Today’s USD/JPY Signals

Risk 0.75%.

Trades may only be taken between 8am New York time Wednesday and 5pm Tokyo time Thursday.

Short Trade Ideas

  • Go short following a bearish price action reversal on the H1 time frame immediately upon the next touch of 111.82, 112.40, or 112.93.

  • 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.

  • 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

  • Go long following a bullish price action reversal on the H1 time frame immediately upon the next touch of 109.49 or 108.50.

  • 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.

  • 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 we still had a bullish consolidation in this currency pair. I saw the USD as likely to strengthen further over the medium term, so I continued to take a weakly bullish bias if the price bounced at any of the identified support levels.

This was a good call as the bullish consolidation has continued, with the 111.50 price area continuing to hold. A little bit higher just above 112.00 we have long-term high prices.

Volatility here is still relatively low but we may be close to a tipping point, with either a stronger bullish movement about to start or a major bearish reversal.

I think the price is most likely to continue to rise, but I would take trades in either direction from a reversal at a key level. Long trades probably have a slightly higher chance of success.USDJPYThere is nothing of high importance scheduled for today concerning either the JPY or the USD.

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