Last Thursday’s signals produced a losing long trade following the bullish pin candlestick rejecting the support level at 106.72.
Today’s USD/JPY Signals
Risk 0.75%.
Trades may be entered between 8am New York time and 5pm Tokyo time, during the next 24-hour period only.
Short Trade
Short entry following a bearish price action reversal on the H1 time frame immediately upon the next touch of 107.20.
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.
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 Trades
Long entry following a bullish price action reversal on the H1 time frame immediately upon the next touch of 106.03 or 105.51.
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.
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
I wrote towards the end of last week that I was cautiously bearish over the short to medium terms, and this has been a correct approach as the price has finally started to fall again, in line with the long-term bearish trend. The bearish trend line still dominates the chart, as shown in the price chart below, although there is key support below confluent with a round number at 106.00. I maintain a bearish bias and there is no reason not to see still lower prices ahead.
There is nothing important due today concerning either the JPY or the USD.