Yesterday’s signals produced a profitable short trade following the bearish rejection with an inside candlestick on the hourly chart rejecting the resistance level at 112.85. It would probably be a good idea to take at least partial profit now as the price seems as if it may be bottoming out.
Today’s USD/JPY Signals
Risk 0.75%.
Trades must be entered from 8am New York time to 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 112.85.
- 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.
- 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 Trades
- Long entry following a bearish price action reversal on the H1 time frame immediately upon the next touch of 111.74 or 111.39.
- 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.
- 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
Yesterday saw a test of 112.85 from which the price has fallen quite convincingly. After threatening to really start moving upwards a few days ago, the price is now becoming established in a bearish channel. A major test of the new bearishness will come if the price reaches the supportive area below, with 111.74 and 111.39 producing a confluence of support that could become a generalized zone. There is no strong long-term trend in this currency pair.
There is nothing due today concerning either the JPY or the USD.