Yesterday’s signals produced a profitable long trade following the bullish engulfing candle rejecting the support level at 108.69. It would probably be wise to exit with full profit if not done already, as this is a clear counter-trend trade, although there is a small chance this could be a long-term bottom.
Today’s USD/JPY Signals
Risk 0.75%.
Trades may only be entered from 8am New York time until 5pm Tokyo time, during the next 24-hour period.
Short Trades
- Short entry following a bearish price action reversal on the H1 time frame immediately upon the next touch of 109.60 or 110.24.
- 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.
- 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 Trade 1
- Long entry following a bullish 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.
- Remove 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
Yesterday I note that the support level of 108.69 would probably be reached, and if it broke down, could produce a sharp fall in price as there is little support below that. In fact, there was a bullish bounce at the level, which has produced a move up following a double bottom. The bullish move is beginning to look as if it has run out of steam, and it is not far from the resistance at 109.60, so that is logical. There is a long-term bearish trend, so provided 109.60 holds, the price is going to be attracted back down to 108.69 again. This pair remains important in the market, and is still providing the most price volatility of all the major Forex currency pairs.
There is nothing due today concerning either the JPY or the USD.