Last Thursday’s signals were not triggered as there was no bullish price action at 109.53.
Today’s USD/JPY Signals
Risk 0.75%.
Trades may only be entered 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 the bearish trend line shown in the chart below, which is currently situated at approximately 110.25.
- 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
- Go long following a bullish price action reversal on the H1 time frame immediately upon the next touch of 108.69.
- 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 is established within a more decisively bearish long-term trend, as well as a re-shaped medium-term bearish channel. The Yen acts as a safe-haven asset, and despite the geographical proximity of Japan to North Korea, paradoxically has risen on Korean tensions.
Despite the bearish picture, it should be noted that the area below 109.00 saw a major supportive inflection a few months ago, so a major reversal in this area is quite possible, so short trades below that area should be treated with extreme caution.
The price is currently sitting right on a potential resistance level at 109.56, but the question of whether it will hold over the coming hours is too close to call, so I am not using this level at present. The best opportunity likely to occur soon would be a short trade off a bearish rejection of the upper channel trend line at about 110.25.
There is nothing due today concerning either the JPY or the USD.