Yesterday’s signals produced a profitable short trade following the bearish pin candle rejecting the resistance level identified at 113.95.
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
Long entry following a bullish price action reversal on the H1 time frame occurring upon the next touch of 112.95 or 112.50.
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 entry into the zone between 113.95 and 114.07.
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
Yesterday saw another failed attempt to break up past 114.00, giving a nice short trade opportunity signalled by the bearish pin candle rejecting the resistance. The price has continued to fall during the Asian session as the USD weakened and the Yen recovered. It looks as if the price will stabilize for a while now, or possibly fall to the next support just below 113.00, which could provide a good long entry opportunity.
There is nothing due today concerning the JPY. Regarding the USD, there will be a release of PPI data at 1:30pm London time followed later by the Chair of the Federal Reserve testifying before Congress at 3pm.