USDJPY: Bearish below 107.76
Yesterday’s signals were not triggered, as there was no bullish price action at 107.50.
Today’s USD/JPY Signals
Risk 0.75%.
Trades must be taken prior to 5pm Tokyo time Friday.
Short Trade Ideas
Go short following a bearish price action reversal on the H1 time frame immediately upon the next touch of 107.77, 108.00 or 108.11.
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 Trade Ideas
Go long following a bullish price action reversal on the H1 time frame immediately upon the next touch of 107.50 or 107.36.
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 yesterday that there was is weak long-term bearish trend, but if the support at 108.11 held over the day, that would be a sign that we would be a little more likely to see higher prices than lower ones over the near future.
This was a good call, as the price broke below that level shortly after New York opened, and continued to make a relatively strong bearish move, before seemingly bottoming out a little way above 107.60.
The picture has become more bearish, with the price chart below showing the price is now established within a wide bearish channel. This suggests that the best opportunities in this pair which may set up soon with either be a strong bearish break below the 107.50 area (which seems to be strong support), or a bearish failure after a bullish retracement to 108.00 or high, ideally rejecting the upper trend line of that price channel.
I would take a bearish bias if either of these set-ups fall into place.
There is nothing of high importance due today regarding either the JPY or the USD.