Yesterday’s signals may have provided both a profitable long trade at 110.35, and then a trade later during the Asian session long from 109.82, the latter of which would still be open and in play. I would not want to be long here, though, as the Yen looks prone to further gains.
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 110.33.
· 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
· Long entry following a bearish price action reversal on the H1 time frame immediately upon the next touch of 110.35 or 109.82.
· 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
The Yen has received a strong boost upon North Korean tensions, which is paradoxical considering that Japan would be threatened if war broke out there. Although this pair is largely ranging, with key support at 109.82 confluent with a now supportive trend line, the Yen is the only currency stronger than the USD over the short-term, so a break down below there would not be a great surprise. It would be a major technical development and might signal a further significant fall, as there are no key support levels nearby below there.
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.