USDJPY: More bearish on Yen safe-haven flow
Last Thursday’s signals produced a profitable long trade from the bullish bounce at 107.57 and a losing short trade from the bearish rejection of 108.18.
Today’s USD/JPY Signals
Risk 0.75%.
Trades may only be entered between 8am New York time Monday and 5pm Tokyo time Tuesday.
Short Trade Ideas
Short entry following a bearish price action reversal on the H1 time frame immediately upon the next touch of 107.91 or 108.43.
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.
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
Long entry following a bullish price action reversal on the H1 time frame immediately upon the next touch of 107.46, 107.26, or 107.21.
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.
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 the then-current bearish retracement looked like a normal pullback within a bullish structure. I therefore preferred long trades which was a good call as we got an opportunity to go long from 107.57 which paid off, albeit only moderately.
The price now is making another minor bearish dip from new lower resistance at 107.91. There is a risk-off sentiment which is helping to boost the Yen, but we have seen no standout bearish move yet, and there may still be buyers at the 107.50 area.
Much will probably now depend upon how the military tension between Iran and Saudi Arabia plays out over the coming days – in the meantime, I take no directional bias on this currency pair.
There is nothing of high importance due today concerning either the JPY or USD.