Last Thursday’s signals were not triggered as there was no bearish price action at 114.37.
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 was very bullish until Friday evening when in a “sell the fact” type situation, it began to fall sharply as soon as Janet Yellen stated that an interest rate hike was almost certain. The price has fallen quite a lot and is almost below its level of 3 months which would again suggest a death of the long-term bullish trend. Bulls really want to see this pair back up above 114.20 again soon to be sure that they are on the winning side. For bears, a break below 112.90 would look very significant.
There is nothing due today concerning either the JPY or the USD.