Last Thursday’s signals were not triggered as neither of the key levels were reached during that session.
Today’s USD/JPY Signals
Risk 0.75%.
Trades must be taken between 8am New York time and 5pm Tokyo time, over the next 24-hour period only.
Short Trade 1
- Go short following a bearish price action reversal on the H1 time frame immediately upon the next touch of 109.80.
- 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
This pair is the second most important pair right now in the Forex market, after the EUR/USD currency pair. The U.S. Dollar is very weak and as such this pair is in a matching downwards trend, although the Yen has not recently been strong enough to really benefit from that. There is a strong support level below at 108.69 where there is a recent double bottom. If this level breaks, it will probably trigger a sharp fall as it has become a major line in the sand, and as there are no support levels closely below it. Although there is a pattern of higher lows since the double bottom, the fact that the resistance level at 109.80 has held twice in line with the long-term trend, falling sharply after the second test, suggests that the price is going to move lower still. The short-term price action since this week’s session has begun confirms that, although we probably will not see any real movement until after the New York open today, or maybe even later than that.
There is nothing due today concerning either the JPY or the USD.