USD/JPY: Pivotal Point at 107.53
Yesterday’s signals were not triggered as neither of the key levels have been reached.
Today’s USD/JPY Signals
Risk 0.75%.
Trades must be entered between 8am New York time Thursday and 5pm Tokyo time Friday.
Short Trade Idea
Go short following a bearish price action reversal on the H1 time frame immediately upon the next touch of 107.73.
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 ride.
Long Trade Ideas
Go long following a bullish price action reversal on the H1 time frame immediately upon the next touch of 106.44, 106.08, or 105.82.
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 trade is 20 pips in profit and leave the remainder of the position to ride.
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 as there is a long-term bearish trend, even though the U.S. stock market is seeing some recovery, so I remain bearish, especially if the price stays below the nearby resistance at 108.53. This was a good call as the price has continued to fall.
We now see the price trading below 107.00 right at the recent lows, and it might find some support here. There is bearish momentum, but bears should be concerned with the cluster of support levels below 106.44.
I take a cautiously bearish bias between 107.73 and 106.44 and would prefer to see a significant bullish retracement before entering any additional short trades.
There is nothing of high importance due today regarding either the JPY or the USD.