USD/JPY Signal Update
Yesterday’s signals were not triggered as none of the key levels were ever reached.
Today’s USD/JPY Signals
Risk 0.75%.
Trades must be entered from 8am New York time until 5pm Tokyo time, during the next 24-hour period only.
Long Trades
Long entry following a bullish price action reversal on the H1 time frame immediately upon the next touch of 114.77 or 114.29.
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.
Remove 50% of the position as profit when the trade is 20 pips in profit and leave the remainder of the position to ride.
Short Trades
Short entry following a bearish price action reversal on the H1 time frame immediately upon the next touch of 116.29 or 116.79.
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.
Remove 50% of the position as profit when the trade is 20 pips in profit and leave the remainder of the position to ride.
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 the level at 116.29 looked very resistant. It should be a good yardstick to use as a measurement – if it holds, that will be a bearish sign. This is even more true today as the price coils bullishly just below that level. It feels as if should the price break up above 116.29 and 116.79 there could then be a strong upwards movement back up to test recent highs. Conversely a failure at these levels could be really pivotal and spark a fresh wave of strong selling.
There is nothing due today regarding the JPY. Concerning the USD, there will be a release of Crude Oil Inventories data at 3:30pm London time.