USD/JPY Signal Update
Last Thursday’s signals were not triggered as none of the key levels identified were ever reached.
Today’s USD/JPY Signals
Risk 0.75%.
Trades must be taken from 8am New York time until 5pm Tokyo time, during the next 24-hour period only.
Long Trades
Go long following a bullish price action reversal on the H1 time frame occurring upon the next touch of 111.91 or 111.36.
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 Trades
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
Key levels are continuing to hold. We see a bunching up of the price just above the 112.00 level which seems to be supportive, meaning the price is forming a type of consolidating triangle. A break below 112.00 looks like the more likely short-term scenario. If that does not happen then a trip back up to the 114.00 area looks more probable.
This pair is technically still in a long-term bullish trend, but the medium-term trend is strongly bearish and the bullish trend may be over.
There is nothing due today concerning either the JPY or the USD.