Yesterday’s signals were not triggered as there was no bearish price action at 110.76.
Today’s USD/JPY Signals
Risk 0.75%.
Trades may only be taken between 8am New York time and 5pm Tokyo time, over the next 24-hour period.
Short Trade 1
* Short entry following a bearish price action reversal on the H1 time frame immediately upon the next touch of 111.49.
* Put the stop loss 1 pip above the local swing high.
* Move the stop loss to break even once the trade is 20 pips in profit.
* Remove 50% of the position as profit when the trade is 20 pips in profit and leave the remainder of the position to run.
Long Trade 1
* Long entry following a bearish price action reversal on the H1 time frame immediately upon the next touch of 110.76.
* Put the stop loss 1 pip below the local swing low.
* Move the stop loss to break even once the trade is 20 pips in profit.
* Remove 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
We saw a strong move up yesterday, but the price action over the past few hours is suggestive of a classic topping motion, suggesting we are about to see another move down imminently. There is still a long-term bearish trend in force and over the past several weeks, it is significant that the Japanese Yen has been one of the biggest gainers against the U.S. Dollar.
There is nothing due today regarding the JPY. Concerning the USD, there will be a release of Crude Oil Inventories data at 2:30pm London time.