The long-term trend is bearish in this currency pair, making it difficult to be comfortable taking long trades except in exceptional circumstances.
Yen strengthening risk-off sentiment.
Yesterday’s signals was not triggered as none of the identified key levels were reached that day.
Today’s USD / JPY signals
Risk 0.75%.
Trades may only be completed between 1 p.m. 8 a.m. New York time Wednesday and 7 p.m. 5 pm Tokyo time Thursday.
Short trade idea
- Short entry after a bearish price transformation on the H1 timeframe immediately after the next touch of 107.59.
- Set stop loss 1 beep over the local turn high.
- Adjust the stop loss to break when the trade is 20 pips in profit.
- Remove 50% of the position as profit when the trade is 20 pips in profit and allow the rest of the position to run.
Long trade ideas
- Long entry after a bullish price action reversal of the H1 timeframe immediately after the next touch of 106.43 or 106.15.
- Set stop loss 1 beep below the local turn low.
- Adjust the stop loss to break when the trade is 20 pips in profit.
- Remove 50% of the position as profit when the trade is 20 pips in profit and allow the rest of the position to run.
The best way to identify a classic “price change” is to close an hour’s candle, e.g. A pin, a doji, an exterior or even just a bright light with a higher closure. You can take advantage of these levels or zones by looking at price action that occur at the given levels.
The yen is a popular asset in turbulent times.
USD / JPY analysis
I wrote yesterday that I would not take any short trades, but I would be prepared to take cautious long trades from bullish bounces at either 107.34 or 107.02.
This was a good call as the price was relatively easily established below the support level reached during the day at 107.34. The lower support level of 107.02 was reached only after the Tokyo session ended and continues to support at the time of writing.
The support level of 107.02 has been very important and corresponds to the round number of 107.00, which suggests that it may be strong. The long-term trend is bearish in this currency pair, making it difficult to be comfortable taking long trades except in exceptional circumstances.
I prefer only to look for short trades today, taking a bearish bias when we get two consecutive hours shutdowns below 107.00 after New York opens, down to at least the next support level of 106.43.
There is nothing of great importance today due to JPY. With regard to the USD, the President of the Federal Reserve will give a small speech at. 2 pm London time.