Yesterday’s signals produced both a profitable long trade from 111.74 which gave approximately 30 pips, and then later another profitable trade from 111.47, which is still running.
Today’s USD/JPY Signals
Risk 0.75%.
Trades may only be entered from 8am New York time until 5pm Tokyo time, over the next 24-hour period.
Short Trade 1
- Short entry following a bearish price action reversal on the H1 time frame immediately upon the next touch of 112.93.
- Put the stop loss 1 pip above the local swing high.
- Move the stop loss to break even once the trade is 20 pips in profit.
- Adjust 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 1
- Long entry following a bearish price action reversal on the H1 time frame immediately upon the next touch of 111.47.
- Put the stop loss 1 pip below the local swing low.
- Move the stop loss to break even once the trade is 20 pips in profit.
- Adjust 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.
USD/JPY Analysis
This pair is in a very uncertain “mood”, hinting at both a long-term bearish trend, but showing quite a lot of bullishness, especially right now with the upwards movement from the broken trend line earlier and then the horizontal support level at 111.74. This suggests that it is going to be difficult to trade this pair for large profit targets, so if you are trading this pair its best to be conservative and nimble. It looks as if today is going to be an up day.
The resistance level at 112.93 continues to look very important to the long-term future, and in fact, the bearish trend line a little way below that level also looks likely to be decisive.
There is nothing due concerning the JPY. Regarding the USD, there will be a release of Unemployment Claims data at 1:30pm London time.