Today’s USD/JPY Signals
Risk 0.75%.
Trades must be entered between 8am New York time and 5pm Tokyo time, during 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 112.93.
- 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 111.39.
- 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
The bullish bias started to look obvious yesterday, and it continues today with the price finally printing a flipped resistance to support level at 111.39. Before this happened, there was a huge gap between any notable levels which left this pair meandering around with very low volatility.
The zoomed-out price chart below shows this pair established within a rough but real bullish channel over the past few days. Some resistance was encountered at the round number of 112.00 earlier, but it is the zone just below 113.00 which will probably be very hard to break and which could provide a major turning point.
