Signal Candle & Trade Decision
The news is positive for the USD, and in the few minutes following the news releases, the price of USD/JPY rises sharply to touch and surpass the bearish trend line by a few pips. However, a few minutes later, in spite of the news the price falls sharply from the trend line. It is a bearish sign when the price acts bearishly in the face of bullish news. By 2pm, the candle closes to form a bearish pin bar. We decide to enter the trade if the price breaks the low of this pin bar during the next hour, in line with the morning's daily signal.