USD/JPY Signal Update
Yesterday’s signals gave a losing long trade from the bullish engulfing candle rejecting the support level identified at 114.77.
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 113.15 or 112.86.
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 115.62.
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
This pair had already been in a medium-term, mild downwards trend during the past few weeks, with a succession of higher lows. With the USD being hit yesterday by the Trump press conference, this pair has moved particularly strongly, with the pair falling by more than 2% over the past 24-hour period.
The long-term bullish trend is still in force, but the sharp fall and continuous lower highs is telling us something important here. The drop does not look likely to turn around quickly.
There is nothing due today regarding the JPY. Concerning the USD, there will be a release of Unemployment Claims data at 1:30pm London time.