Yesterday’s signals produced a long trade from the bullish inside candle on the hourly chart rejecting the support level at 111.74.
Today’s USD/JPY Signals
Risk 0.75%.
Trades may only be taken between 8am New York time and 5pm Tokyo time, over the next 24-hour period.
Short Trade 1
- Go short following a bearish price action reversal on the H1 time frame immediately upon the next touch of 112.85.
- 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.
- 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
- Go long following a bearish price action reversal on the H1 time frame immediately upon the next touch of 111.74 or 111.39.
- 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.
- 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 reached a very interesting point, being squeezed between the upper trend line if its bearish channel and support at 111.74 which has held convincingly. There is a real battle here and I think the bulls will win for two major reasons. Firstly, because the price is in a long-term range, and we have just had a downwards movement. Secondly, because there is too much support below 111.74 so there is buying pressure. If the price breaks above that upper channel trend line, it will be a bullish sign, and the price will be likely to retest 112.85 relatively soon
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Regarding the USD, there will be a release of Building Permits data at 1:30pm London time, followed by Crude Oil Inventories at 3:30pm. Concerning the JPY, later in the Tokyo session the Bank of Japan will release its Monetary Policy Statement, Outlook Report and Policy Rate.