Last Thursday’s signals produced a losing short trade following the bearish pin candle rejecting the resistance level identified at 114.91, although it was not far from producing the minimum required 20 pips to generate some profit.
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 114.08 or 113.41.
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 run.
Short Trade 1
Short entry following a bearish price action reversal on the H1 time frame immediately upon the next touch of 115.45.
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 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
If you look at a long-term chart of this pair, you will see that the area just above 115.00 has been both key support and resistance, therefore it is not surprising that there has been a bearish turn in that area. I had thought the turn was more likely to come a little lower than it did.
The result of this downwards movement has been that the bullish trend is no longer in force and it is quite likely that the pair will now consolidate ahead of crucial data due for both currencies later this week.
There is nothing due today concerning either the JPY or the USD.