Last Thursday's signals produced a losing short trade from the rejection of the resistance level identified at 111.75.
Today’s USD/JPY Signals
Risk 0.75%.
Trades must be entered from 8am New York time until 5pm Tokyo time, over the next 24-hour period only.
Short Trades
Short entry following a bearish price action reversal on the H1 time frame immediately upon the next touch of 111.37 or 111.86.
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 run.
Long Trades
Long entry following a bullish price action reversal on the H1 time frame immediately upon the next touch of 111.06, or 110.80.
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 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 last Thursday that I saw the anticipated support at 111.44 as a key level: I was ready to be bearish below 111.44 and bullish above 111.80. The area at 111.44 did in fact provide the floor for the day, although unfortunately the bullish bounce was a few pips below this level. The price rose in line with the long-term bullish trend, but has now fallen back, and it seems that we have just had a bearish bounce earlier off new lower resistance at 111.37. It seems difficult to predict direction now on this pair. The best I can say is that there probably will not be a great deal of price movement here today, and that the support level at 110.80 looks strong and a very attractive area at which to seek a long trade entry.
There is nothing important due today concerning either the JPY or the USD.