USD/JPY Signal Update
Last Thursday’s signals produced a winning trade following the bearish inside candle during that night’s Asian session rejecting the identified resistance level at 106.30
Today’s USD/JPY Signals
Risk 0.75%
Trades must be taken between 8am New York time and 5pm Tokyo time only.
Short Trades
Go short following a bearish price action reversal on the H1 time frame immediately upon the next touch of 106.30 or 106.64.
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 run.
Long Trades
Go long following a bullish price action reversal on the H1 time frame immediately upon the next touch of 104.80, 103.90 or 103.57.
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 run.
USD/JPY Analysis
I wrote last Thursday that “there is finally a crucial resistance level not far away at 106.30. After such a strong upwards move, it would be a surprise if there was not some kind of bearish pullback if and when that level is reached.”
We have had the bearish reaction off that level right to the pip, but on the way up we have printed some new probable support levels. However the support levels listed above do not look like very solid levels we can have any high confidence in. It feels that a fall back down to 103.57 at least is quite possible now that the markets have digested, and possibly come to terms with, the new quantitative easing program that will be implemented by the Bank of Japan.
The level above at 106.30 is a crucial long-term barrier, and as we have such a fast rise to it and it held so well, I am more confident that it has a good chance of holding and providing bearish pressure
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There is nothing due today concerning either the JPY or the USD.