Last Thursday’s signals should have given a slightly profitable short trade following the bearish rejection of the support level identified at 109.38.
Today’s USD/JPY Signals
Risk 0.75%.
Trades may only be taken from 8am New York time until 5pm Tokyo time, over the next 24-hour period.
Short Trade 1
* Go short following a bearish price action reversal on the H1 time frame immediately upon the next touch of 111.02.
* 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.
Long Trades
* Go long following a bearish price action reversal on the H1 time frame immediately upon the next touch of 110.00 or 109.41.
* 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.
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 was strongly affected by the result of the French election, with the Yen gapping down strongly as safe-haven assets were marked down sharply following the high probability of a forthcoming Macron victory in the second round.
Interestingly, the level at 110.00 seems to be acting as very firm support, although it seems probable that the gap will be filled and it will not hold. Note the price remains well within its long-term bearish trend channel, requiring a break up above the 110.60 area before a medium-term bullish trend could be established.
There is nothing due today concerning either the JPY or the USD.