Yesterday’s signals were not triggered as there was no bearish price action at 111.01.
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
* Go short following a bearish price action reversal on the H1 time frame immediately upon the next touch of 111.43 or 111.71.
* 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
* Go long following a bearish price action reversal on the H1 time frame immediately upon the next touch of 110.00.
* 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 was at the heart of the Forex market yesterday, initially rising strongly to reach a level close to 111.50 upon positive USD news, before falling sharply back to where it started as the market subsequently turned against the greenback.
There is a long-term bearish trend. However, we see a bullish trend line providing support just above the 110.00 level, as shown in the chart below. This could be a launching pad for a serious counter-trend bullish movement, or possibly even a major reversal. Over the very short term, the 110.60 will be the first obstacle for the bulls.
There is nothing due today regarding the JPY. Concerning the USD, there will be a release of Unemployment Claims data 1:30pm London time.