Yesterday’s signals were not triggered as there was insufficiently bearish price action when the price reached 114.08.
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
- Short entry following a bearish price action reversal on the H1 time frame immediately upon the next touch of 114.08.
- 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 Trades
- Long entry following a bearish price action reversal on the H1 time frame immediately upon the next touch of 113.55 or 112.91.
- 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 rose very strongly today, it is at the heart of the Forex market and showing the highest level of volatility over recent days. This is where the action is. Another strong movement today is statistically probable, but it is notable that the price rejected the resistance level at 114.08 close to the time that London opened for business. The price still looks quite firm, but if 114.08 is not broken when New York opens or shortly afterwards, a downwards movement to 113.55 would be on the agenda.
Politically, the controversy over President Trump’s firing of the Director of the FBI, may create some weakness in the U.S. Dollar.
There are long-term and medium-term bullish trends, so there is probably going to be more potential profits in long trades than in short trades.
There is nothing due today concerning the JPY. Regarding the USD, there will be a release of Crude Oil Inventories at 3:30pm London time.