Today’s USD/JPY Signals
Risk 0.75%.
Trades may only be taken from 8am New York time to 5pm Tokyo time, over 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 111.36.
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 Trades
Short entry following a bearish price action reversal on the H1 time frame immediately upon the next touch of 112.50 or 112.91.
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
The bullish trend is well over, and this pair is now in a medium-term bearish trend. The short-term bearish trend can be defined by a close bearish trend line which can be seen in the chart below. The nearest resistance level above there is 112.50 which, as it is also a psychological number, can be expected to provide a good chance of a successful short trade if retested soon.
There is nothing due today concerning the JPY. Regarding the USD, there will be a release of Core Durable Goods Orders data at 1:30pm London time.