USD/JPY Signal Update
Last Thursday’s signals were not triggered as none of the key levels were hit during that session.
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
Go long following a bullish price action reversal on the H1 time frame occurring upon the next touch of 112.95 and 112.50.
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 Trade 1
Go short following a bearish price action reversal on the H1 time frame immediately upon the next entry into the zone between 113.95 and 114.07.
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 has seen a strong recovery in recent days, but the move up has not yet been strong enough to break up past the strong area of resistance around the 114.00 area. The USD has been stronger against the Euro and the Swiss Franc.
The action now suggests a further fall to the 112.50 area will take place over the short term.
There is nothing due today concerning either the JPY or the USD.