Last Thursday’s signals were not triggered as neither of the key levels were ever reached.
Today’s USD/JPY Signals
Risk 0.75%.
Trades must be entered between 8am New York time and 5pm Tokyo time, during the next 24-hour period only.
Short Trades
• Short entry following a bearish price action reversal on the H1 time frame immediately upon the next touch of 109.38 or 110.00.
• 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.
Long Trade 1
• Long entry following a bearish price action reversal on the H1 time frame immediately upon the next touch of 107.66.
• 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.
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 remains at the heart of the Forex market– it is moving with more direction and volatility than any other major pair, with the Yen acting as a safe-haven asset. The pair is strongly established within a well-defined long-term bearish channel, although it touched the lower trend line of the channel towards the end of last week and has risen since then. There are signs that the bullish pull back may have topped out already, and could be about to move down again without even reaching the nearest resistance level at 109.38.
The area close to 110.00 also looks particularly attractive for new short trade entries.
There is nothing due today regarding the JPY. Concerning the USD, there will be a release of Building Permits data at 1:30pm London time.