Last Thursday’s signals produced a profitable short trade following the rejection of the resistance level identified at 111.49 by the doji candlestick on the hourly chart. The entry was retested but partial or full profits could have been taken at the swing low or when 20 pips was achieved.
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.
Short Trades
Short entry following a bearish price action reversal on the H1 time frame immediately upon the next touch of 110.62 or 111.49.
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
Everything is bearish – the longer-term trend, the rhythm, the lower highs and lows, the dominant trend lines. The greenback is weak and the Yen is particularly strong as a perceived safe-haven currency. Recent hours have shown a bearish break below the former probable support level at 110.23. There is no obvious support in sight and the price continues to break down into clear blue sky with new 4 month lows.
For these reasons, I have no possible long trade in mind.
The obvious place to enter a short would be at the previously supportive double bottom at 110.62.
There is nothing due today concerning either the JPY or the USD.