Yesterday’s signals produced a short trade following the bearish doji/pin candle rejection of the resistance level identified at 114.03 shortly after the New York open yesterday. However, this trade only produced the minimum profit of 20 pips before returning to be stopped out at break even.
Today’s USD/JPY Signals
Risk 0.75%.
Trades must be entered between 8am New York time and 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 113.85.
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 ride.
Short Trades
Go short following a bearish price action reversal on the H1 time frame immediately upon the next touch of 114.37 or 114.90.
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 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
This pair has made another strong bullish move over the past 24 hours, and has significantly broken up above the resistant area around 114.00 which is another bullish sign. For the first time in a while, the price is above its levels from 3 months and 6 months, suggesting a technical resumption of a long-term bullish trend which had looked to be over.
There has been a lot of movement in this pair for a few years now, meaning it is a great pair to watch for trading opportunities – it gives opportunities.
If the price can at least hold up above the 114.00 area without retreating today, that would be a further bullish sign.
There is nothing due today concerning the JPY. Regarding the USD, there will be a release Unemployment Claims data at 1:30pm London time.