Yesterday’s signals were not triggered as there was no bullish price action at 110.00.
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 Trade 1
* Short entry following a bearish price action reversal on the H1 time frame immediately upon the next touch of 111.02.
* 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 Trades
* Long entry following a bearish price action reversal on the H1 time frame immediately upon the next touch of 110.00 or 109.41.
* 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.
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 still moving with quite a lot of volatility. The most interesting feature technically is that the long-term upper bearish channel trend line looks as if it is about to be tested. A break above there could signify that the long-term bearish trend is coming to an end.
There is nothing due today regarding the JPY. Concerning the USD, there will be a release of CB Consumer Confidence data at 3pm London time.