Last Thursday’s signals were not triggered as none of the key levels were reached during that session.
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
- Short entry following a bearish price action reversal on the H1 time frame immediately upon the next touch of 112.39 or the upper channel trend line shown in the chart below currently sitting at about 111.82.
- 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 Trade 1
- Long entry following a bearish price action reversal on the H1 time frame immediately upon the next touch of 110.91.
- 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
I had thought the price would rise again at the end of last week, at least enough to retest the key resistance level at 112.85. However, the price fell again and managed to re-establish a clear medium-term bearish channel which has a meaningful duration of approximately 3 weeks. The price continues to move down and is has now fallen over the past 3 months and 6 months, so there is a weakly bearish long-term trend. The bearish channel is waiting for its third hit which tends to be significant, so the best opportunity is most likely to be a short trade from a rejection of the upper trend line.
There is nothing due today concerning either the JPY or the USD.