Last Thursday’s signals produced a profitable long trade, which is slowly moving ahead in profit and probably should be maintained.
Today’s USD/JPY Signals
Risk 0.75%.
Trades must be taken from 8am New York time until 5pm Tokyo time, over the next 24-hour period only.
Short Trade 1
Short entry following a bearish price action reversal on the H1 time frame immediately upon the next touch of 114.50.
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 Trades
Long entry following a bullish price action reversal on the H1 time frame immediately upon the next entry into the zone between 113.81 and 113.53.
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 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
This pair continues to look interesting. There is a long-term bullish trend, and the price has been trying to break up above the 114.25 over recent days, and over the past 6 months. The price made a new 6-month high during the Asian session and it looks as if should the resistance give way, the price could move up by quite a lot very quickly, possibly as high as 117.00 or so. However, it would not be surprising if the move failed and the test of 114.50 is just the top of a renewed downwards movement against the long-term trend. The price is now in a pivotal area which could provide a good long or short trade, so the action here is worth watching closely. The long and medium-term trends currently suggest a bullish breakout is the more likely outcome.
There is nothing due today concerning either the JPY or the USD.