Yesterday’s signals were not triggered as there was no bearish price action at 112.91.
Today’s USD/JPY Signals
Risk 0.75%.
Trades may only be taken from 8am New York time until 5pm Tokyo time, over the next 24-hour period.
Long Trade 1
Long entry following a bullish price action reversal on the H1 time frame occurring upon the next touch of 112.91.
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 ride.
Short Trades
Short entry following a bearish price action reversal on the H1 time frame immediately upon the next touch of 113.85 or 114.03.
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 made a strong bullish move over the past 24 hours, in fact it was a very strong move. The move now seems to have run out of steam and will look very overbought if it continues upwards and reaches the start of a resistant area at 113.85. The price action currently suggests over the short-term, a downwards movement is more likely.
It is important to remember that there is no long-term trend in this pair, so movements in both directions can be fair game. However, if the price gets established above 114.37, we would be seeing the resumption of a long-term bullish trend.
There is nothing due today concerning the JPY. Regarding the USD, there will be a release of ISM Manufacturing PMI data at 3pm London time, followed by Crude Oil Inventories at 3:30pm.