Yesterday’s signals were not triggered as none of the identified levels were ever reached.
Today’s USD/JPY Signals
Risk 0.75%.
Trades must be entered from 8am New York time until 5pm Tokyo time, during the next 24-hour period only.
Long Trades
Go long following a bullish price action reversal on the H1 time frame occurring upon the next touch of 114.08 or 113.41.
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 ride.
Short Trade 1
Go short following a bearish price action reversal on the H1 time frame immediately upon the next touch of 115.45.
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 ride.
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
I wrote yesterday that the bullish trend was no longer in force and it was quite likely that the pair would now consolidate ahead of crucial data due for both currencies later this week. This is what is happening, but the pair is looking more bullish now. A break up above the 115.50 area would be very significant and suggest that a long-term bullish trend is resuming.
There is nothing due today regarding the JPY. Concerning the USD, there will a release of PPI data at 12:30pm London time.