USD/JPY Signal Update
Last Thursday’s signals were not triggered, as there was no bearish price action when the price reached 114.27.
Today’s USD/JPY Signals
Risk 0.75%.
Trades must be entered from 8am New York time until 5pm Tokyo time, during the next 24-hour period.
Long Trade 1
Go long following a bullish price action reversal on the H1 time frame occurring upon the next touch of 111.91.
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.
Take off 50% of the position as profit when the trade is 20 pips in profit and leave the remainder of the position to run.
Short Trade 1
Go short following a bearish price action reversal on the H1 time frame immediately upon the next touch of 114.27.
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.
Take off 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
I wrote last week that a break up above the resistance at 114.25 would be significant, and that break did then see the price rise higher. However, although we are getting higher lows, the pair looks more indecisive now, as though it will most probably consolidate in a range for a while. It seems that the price is still reluctant to truly fill the weekend price gap.
There is nothing due today concerning the USD. Regarding the JPY, there will be releases of the Bank of Japan’s Monetary Policy Statement, Outlook Report and Policy Rate before 5am London time, followed by a press conference at 6:30am.