USD/JPY Signal Update
Yesterday’s signals were not triggered as there was no bullish price action when the price reached 113.46 or 113.14.
Today’s USD/JPY Signals
Risk 0.75%.
Trades must be entered from 8am New York time to 5pm Tokyo time, during the next 24-hour period only.
Any open trade must be protected by 6:30pm London time.
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 Trades
Go short following a bearish price action reversal on the H1 time frame immediately upon the next touch of 114.07 or 114.90.
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
Yesterday the market was blindsided by comments coming from the new U.S. administration which had the effect of pushing down the Dollar, although it recovered during the Asian session. Overall this pair still looks bearish but the pace of the downwards movement is slowing. Probably little will happen now until the news later which could really push the price anywhere.
There is nothing due today concerning the JPY. Regarding the USD, there will be a release of the ADP Non-Farm Employment Change at 1:15pm London time, ISM Manufacturing PMI at 3pm, Crude Oil Inventories at 3:30pm, and the FOMC Statement and Federal Funds Rate at 7pm.