Yesterday’s signals may have provided a losing trade following the very small pin candle rejecting the resistance level at 110.62.
Today’s USD/JPY Signals
Risk 0.75%.
Trades must be entered from8am New York time until5pm Tokyo time,during the next 24-hour period only.
Short Trades
- Go short following a bearish price action reversal on the H1 time frame immediately upon the next touch of 110.76 or 111.49.
- 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 off50% 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 price continued to fall yesterday initially, as I had expected, but later during the New York session the U.S. Dollar recovered. The price is now making another wave up and looks as if it will test the resistance level at 110.76 soon. Although the action suggests a bullish break, the move does not look very convincing, so I have no opinion for the short term. Overall, the situation remains bearish.
The large round number at 110.00 may provide key psychological support if reached.
There is nothing due today regarding the JPY. Concerning the USD, there will be a release of CB Consumer Confidence data at 2pm London time.