Yesterday’s signals produced a losing short trade following the hourly inside candle rejecting the resistance level identified at 110.76.
Today’s USD/JPY Signals
Risk 0.75%.
Trades may only be taken from 8am New York time to 5pm Tokyo time, over the next 24-hour period.
Protect any open trades by 6:30pm London time.
Short Trades
* Short entry following a bearish price action reversal on the H1 time frame immediately upon the next touch of 111.01 or 111.71.
* 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 Trade 1
* Long entry following a bearish price action reversal on the H1 time frame immediately upon the next touch of 110.00.
* 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
The price was bought a little yesterday after its fall, rising with more momentum than it had been falling over the recent hours. However, a readjustment of the bearish trend line and resistance from 110.76 to 111.01 shows the bearish movement holding. The FOMC release is likely to be very crucial to the movement of this pair over the near future so it is hard to make any forecast.
There is nothing due today regarding the JPY. Concerning the USD, there will be a release of the ADP Non-Farm Employment Change forecast at 1:15pm London time, followed at 3pm by ISM Non-Manufacturing PMI and Crude Oil Inventories half an hour later. Finally, and most importantly, there will be a release of the FOMC Meeting Minutes at 7pm.