USD/JPY Signal Update
Yesterday’s signals produced a losing trade from the bullish rejection of the identified support level at 116.30.
Today’s USD/JPY Signals
Risk 0.75%.
Trades may only be taken between 8am New York time and 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 114.77 or 114.29.
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.
Short Trades
Go short following a bearish price action reversal on the H1 time frame immediately upon the next touch of 116.29 or 116.79.
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.
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
I wrote yesterday that this pair was still within a dominant sequence of major lower lows and lower highs and for this reason it was too early to see a resumption of the long-term bullish trend. My caution turned out to be correct as after an initial attempt to rise we are now seeing another attempt at the lows just above 115.00. Over recent hours we have had another attempt to rise but the level at 116.29 looks very resistant. It should be a good yardstick to use as a measurement – if it holds, that will be a bearish sign.
There is nothing due today regarding either the JPY or the USD.