By: DailyForex
Last Thursday’s signals were not triggered, as there was no bullish price action at 109.00.
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 1H1 time frame H1H1H1 time frame immediately upon the next touch of 109.76.
- 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 bullish price action reversal on the 1H1 time frame H1H1H1 time frame immediately upon the next touch of 108.05.
- 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 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
Last Thursday I wrote that there were good reasons to be bearish, but that it would be wise to beware of the support at the lows just above 108.00. This was a good frame for this pair, as we had continuing downwards movement but a rejection of the support level at 108.05. The price rose sharply from there, come back, and now seems poised to fall again.
There are still several to be bearish, as there is a long-term bearish trend and the price is moving within a clear bearish channel, admittedly with wide swings in both directions. Yet the bearish trend lines are getting steeper, which is a good sign for bears. The Japanese Yen is also relatively strong, performing as a safe-haven currency, and so is well positioned to outperform the U.S. Dollar whether equity markets begin to recover or start to drop again.
There is nothing due today concerning either the JPY or the USD.