Today’s USD/JPY Signals
Short Trades
- Short entry following a bearish price action reversal on the H1 time frame immediately upon the next touch of 110.72 or 111.47.
- 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 bearish price action reversal on the H1 time frame immediately upon the next touch of 109.63.
- 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.
USD/JPY Analysis
This pair is in an interesting situation and should be attractive to traders. The price has again reached and rejected the bearish trend line shown in the chart below. This line is the upper boundary of a long-term and very wide bearish price channel, and therefore logically there is a good possibility that the price has much further to fall. Strengthening the bearish case, we also have a retest and rejection of a broken short-term bullish trend line. The difficulty for bears is that not only has the U.S. Dollar been strengthened by yesterday’s rate hike by the Federal Reserve, it is also being bought strongly every time there is a significant fall, which makes trading the pair short a painful process over the long-term, so something very stressful over the short-term.
