USD/JPY Signal Update
Yesterday’s signals were not triggered as neither of the key levels were ever reached.
Today’s USD/JPY Signals
Risk 0.75%.
Trades must be entered only from 8am New York time until 5pm Tokyo time, during the next 24-hour period.
Long Trade 1
Long entry following a bullish price action reversal on the H1 time frame occurring upon the next touch of 111.91.
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
There has been no real change here – it was an indecisive day. There is still a downwards trend but it is in question as the price continues to threaten to rally after making the double bottom just above 112.50. It still looks as if the bearish trend line and the level at 114.27 are going to be the crucial lines in the sand which the pair must cross to trend bullishly again.
There is nothing of high importance due today concerning the JPY. Regarding the USD, there will be a release of Crude Oil Inventories data at 3:30pm London time.