Yesterday’s signals were not triggered as none of the key levels were ever reached.
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.
Long Trades
* Long entry following a bullish price action reversal on the H1 time frame occurring upon the next touch of 113.41, 112.91 or 112.79.
* 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.
Short Trade 1
* Short entry following a bearish price action reversal on the H1 time frame immediately upon the next touch of 114.91.
* 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.
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
This pair has formed a double bottom in the 113.60 area and has risen strongly and bullishly over the past few hours. It appears the advance is being halted by the resistance level at 114.07 from which the price might turn. As the price is touching it at the time of writing, I do not give it as a key resistance level today. If the price managed to get established above that level, it would be a bullish sign that the price will continue up to the 115.00 area and that the long-term bullish trend is reasserting itself.
There is nothing due today concerning the JPY. Regarding the USD, there will be a release of the ADP Non-Farm Employment Change numbers at 1:15pm London time, followed by Crude Oil Inventories at 3:30pm.