USD/JPY Signal Update
Yesterday’s signals produced a long trade from the bullish doji candle rejecting the support level at 112.86, which gave about 40 pips of profit before reversing.
Today’s USD/JPY Signals
Risk 0.75%.
Trades must be entered from 8am New York time to 5pm Tokyo time, during the next 24-hour period only.
Long Trade 1
Long entry following a bullish price action reversal on the H1 time frame occurring within the zone between 111.91.
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 Trade 1
Short entry following a bearish price action reversal on the H1 time frame immediately upon the next touch of 113.61.
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
We have broken yet another key support level and the chart below shows how strong the medium-term bearish trend has been. In fact, the trend has even strengthened as evidenced by the steeper new bearish trend line which can now be drawn. Although there is a long-term bullish trend, there is no sign of bullishness, with the Japanese Yen being one of the strongest gainers of all currencies recently.
There is nothing due today regarding the JPY. Concerning the USD, there will be a release of CPI data at 1:30pm London time followed by a minor speech from the Chair of the Federal Reserve at 8pm.