USD/JPY Signal Update
Yesterday’s signals produced a profitable short trade followed the rejection of the resistance level identified at 111.33 following the bearish inside bar break. The price returned to the breakeven point earlier so the trade would be over.
Today’s USD/JPY Signals
Risk 0.75%
Trades may only be entered from 8am New York time to 5pm Tokyo time, over the next 24-hour period.
Long Trades
Go long following a bullish price action reversal on the H1 time frame immediately upon the next touch of 110.26 or 109.81.
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 ride.
Short Trade 1
Go short following a bearish price action reversal on the H1 time frame immediately upon the next touch of 111.33.
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 ride.
USD/JPY Analysis
The pair has finally stopped rising and looks increasingly likely to have begun a consolidation process. It hit the key resistance level of 111.33 and then fell sharply although this may have had something to do with the strong earthquake that hit Japan at that time.
Taking a closer look at the hourly chart, we have a possible bullish square root formation if there is another bounce at 110.26, but before that we already have something of a bearish Quasimodo / over and under pattern with its final leg off the recent swing high at 110.20. This means that over the short-term, it is impossible to be confident which direction the price will take, although the limits of the ranges may well hold. A clue is the high significance of the level at 111.33 which represents a major long-term pivot. However, the long-term trend is strongly bullish.
There is nothing due today regarding either the JPY or the USD. It is a public holiday in Japan.