Yesterday’s signals were not triggered as there was no bearish price action when the price reached the zone between 113.95 and 114.07.
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 only.
Long Trade 1
Go long following a bullish price action reversal on the H1 time frame occurring upon the next entry into the zone between 113.95 and 114.07.
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 114.90.
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’s hawkish comments by Janet Yellen boosted the USD quickly and strongly, and it was felt most in this pair as the price was pushed up above the 114.00 area, breaking smoothly through what had previously been strong resistance there. The price has held up and this seems to be a significantly bullish development. It is probable that the area around 114.00 will now be supportive.
We may now see a resumption of the long-term bullish trend truly begin.
There is nothing due today concerning the JPY. Regarding the USD, there will be a release of CPI and Retail Sales data at 1:30pm London time followed later by the Chair of the Federal Reserve testifying before Congress at 3pm, and Crude Oil Inventories numbers half an hour afterwards