Yesterday’s signals were not triggered as neither of the key levels were ever reached.
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
Short 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 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 107.66.
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 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 becoming a primary beneficiary of yesterday’s fall in the U.S. Dollar. The pair is well-established within a well-defined long-term bearish channel and is continuing to make new multi-month lows. Moreover, 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.
The area close to 110.00 is looking particularly attractive for new short trade entries.
There is nothing due today regarding the JPY. Concerning the USD, there will be a release of PPI and Unemployment Claims data at 1:30pm London time, followed by Preliminary UoM Consumer Sentiment number at 3pm.