Yesterday’s signals produced a losing long trade from 109.41, although the text included a warning to “be very careful of taking long trades any time soon, so a longer time frame could have invalidated the signal.
Today’s USD/JPY Signals
Trades may only be taken from 8am New York until 5pm Tokyo time, over the next 24-hour period.
Short Trade 1
- Short entry following a bearish price action reversal on the H1 time frame immediately upon the next touch of 109.62.
- 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 ride.
Long Trade 1
- Long entry following a bearish price action reversal on the H1 time frame immediately upon the next touch of 108.69.
- 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.
The long-term bearish trend continues to strengthen with some interesting technical developments taking place. The lower trend line of the wide bearish channel has now become resistance, pushing the price down earlier from 109.62. This break is a very bearish sign and the price looks set to continue to fall to 108.69. I would be extremely careful about taking any long trades.
There is nothing due today concerning the JPY. Regarding the USD, there will be a release of Crude Oil Inventories at 3:30pm London time.