Last Thursday’s signals produced a profitable long trade following the bullish pin bar rejecting the support level identified at 113.55, but it only produced the minimum 20 pips of profit before being stopped out.
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 113.46 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
The price has pulled back, and is held down by a short-term bearish trend line. For the long-term bullish trend to reassert itself, the price really needs to get established above this trend line, and at the time of writing, the price is failing there, suggesting that the high of the day may have already been reached, although the broken level at 113.46 might hold as support. This pair still has the most volatility of any major Forex currency pair and has risen significantly since the market opened this week.
There is nothing scheduled today concerning either the JPY or the USD.