Last Thursday’s signals were not triggered as none of the key levels were reached during that session.
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.
Short Trade 1
* Short entry following a bearish price action reversal on the H1 time frame immediately upon the next entry into the zone between 111.49 and 111.71.
* 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.
Long Trade 1
* Long entry following a bearish price action reversal on the H1 time frame immediately upon the next touch of 110.00.
* 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.
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 is in a very interesting position now. It has been in a long-term bearish channel, more of a flag, and trending downwards. However, as it has approached close to the psychologically key 110.00 level several times over recent days, it has risen sharply, and looks as if it might be making a major bottom there and forming supportive trend lines. To be more confident of this reversal, the price will have to get established above the resistance zone topping at 111.71. Long-term buys could be a very interesting prospect should the price move down again to reach the area near 110.00.
There is nothing due today regarding the JPY. Concerning the USD, the Chair of the Federal Reserve will be speaking at a conference at 9:10pm London time.