USD/JPY Signal Update
Last Thursday’s signals were not triggered as unfortunately the price missed both key support and resistance levels by a fraction of a pip.
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 Trade 1
Long entry following a bullish price action reversal on the H1 time frame occurring upon the next touch of 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 114.27.
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
Last week we had some signs of a major bullish reversal but it did not hold up, despite bearish trend lines being broken to the upside. I wrote that a weekly close above 115.00 would be very crucial for the bulls, and we did not get that. The price has fallen by about 1% since this week’s open and although there has been a small upswing, it does not look convincing yet, so the action over the short term is likely to continue to be bearish.
There is nothing of high importance due today concerning either the JPY or the USD.