USD/JPY: Bearish
Yesterday’s signals were not triggered as none of the key levels were reached after the New York open yesterday.
Today’s USD/JPY Signals
Risk 0.75%.
Trades must be taken from 8am New York time Thursday until 5pm Tokyo time Friday.
Short Trade Ideas
Short entry following a bearish price action reversal on the H1 time frame immediately upon the next touch of 109.74 or 110.07.
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 109.18 or 109.00.
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 yesterday that although the recent bullish long-term breakout was still valid, if the day’s New York close was below 110.18 it would start to look doubtful and if below 110.07 even more doubtful.
I was ready to be more bullish above 110.07 intraday and more bearish as long as the price stays below that level.
This was a correct call as the price never got above 110.07 and has been clearly bearish from that level which held to the pip.
This pair is currently the major focus of the Forex market, although that is likely to change later when the ECB gives its monthly policy release. The market is in risk-off mode today and the Japanese Yen benefits from that.
I take a bearish bias on this currency pair today below 109.74 until at least 109.18.
There is nothing of high importance due today concerning either the JPY or the USD.