Last Thursday’s signals were not triggered, as there was no bullish price action at 111.34.
Today’s USD/JPY Signals
Risk 0.75%.
Trades must be entered from 8am New York time until 5pm Tokyo time during the next 24 hours only.
Short Trade
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 price chart below, which is currently sitting at approximately 111.36.
Place the stop loss 1 pip above the local swing high.
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.
Long Trade
Long entry following a bearish price action reversal on the H1 time frame immediately upon the next touch of 109.85.
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 price reaches 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 wrote yesterday last Thursday that it would be best to be extremely careful about taking any long trades. This turned out to be good advice, with the Yen advancing further and the pair falling and breaking below support. There is now a clearly bearish short-term structure, although there are initial signs of a bullish turn as we approach the handover from the Asian session to the London session, which is not unusual. It should be noted that despite the recent short-term bearish momentum, the price is in a long-term range, so despite the meaningful weakness of the U.S. Dollar, the price here might not fall much further. The support below at 109.85 is almost confluent with a very big round number (110.00) and so could be an interesting medium to long-term long trade opportunity if reached. Over the short-term, bears could focus on the next touch of the bearish trend line visible in the price chart below.
There is nothing important due today concerning either the JPY or the USD. It is a public holiday in the U.S.A. today.