USD/JPY Signal Update
Last Thursday’s signals produced an excellent short trade off the bearish engulfing / pin candle that rejected the identified resistance level at 107.20. This gave about 40 pips or so of profit before the remainder was stopped out at break even. Longer-term traders could have held this for more than 100 pips of profit so far.
Today’s USD/JPY Signals
Risk 0.75%
Trades may only be entered between 8am New York time and 5pm Tokyo time.
Short Trades
Go short following a bearish price action reversal on the H1 time frame immediately upon the next touch of 106.25, 106.64, and 107.20.
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
Go long following a bullish price action reversal on the H1 time frame immediately upon the next touch of 105.44 or 104.76.
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.
USD/JPY Analysis
I wrote last Thursday that “this is probably the most attractive currency pair to trade right now, as it is in a strong and clear bearish trend. It does not look as if the level at 106.50 is going to hold…”
Although we have had some bullish pullbacks they did not last for Long, although it was not possible to get very far with shorts during last Friday’s New York session, the strong fall only came right before the weekly close.
Since this week’s open the price has seen a strong fall as the market is spooked by polls showing the U.K. might vote to leave the E.U., with the Yen playing a safe haven role.
I do not see an end to the strongly bearish trend yet.
There is nothing due today concerning either the JPY or the USD.