Last Thursday’s signals were not triggered as there was insufficiently bearish price action at 111.49.
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.
Short Trade 1
* Short entry following a bearish price action reversal on the H1 time frame immediately upon the next touch of 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 110.76.
* 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 experiencing a deep pull back within a longer-term bearish trend. There is a succession of higher lows, suggesting a continuing upwards movement over the short-term. There is a key resistance level not far above and a top at 112.20 that could become a double top, signalling a resumption of the downwards trend. It looks like things must play out for a while longer before any good potentially entries become sufficiently clear.
There is nothing due today regarding the JPY. Concerning the USD, there will be a release of ISM Manufacturing data at 3pm London time.