Last Monday’s signals were not triggered as there was no bullish price action when the price reached 110.00.
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.
Short Trade 1
- Go short following a bearish price action reversal on the H1 time frame immediately upon the next touch of 110.00.
- 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.
Long Trade 1
- Go long following a bearish price action reversal on the H1 time frame immediately upon the next touch of 107.66.
- 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.
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 is the heart of the Forex market at present – it is moving with more direction and volatility than any other major pair, with the Yen acting as a safe-haven asset. Earlier, it looked as if the price might make a major bottom at 110.00, but the price has broken down and spent a lot of time below that level. There is now a short-term trend line which may be confluent with 110.00 to provide good resistance if the price returns to that area. There is a dominant bearish trend line just below the resistance at 111.49 and we are within both long and short-term bearish channels. Moreover, the price is in a long-term downwards trend, and there is no obvious support until 107.66. For all these reasons, this pair is one that Forex traders should be looking at now, especially with a view to new short trade opportunities.
There is nothing due today regarding the JPY. Concerning the USD, there will be a release of Crude Oil Inventories data at 3:30pm London time.