Yesterday’s signals were not triggered as there was no bearish price action when the price reached 114.08.
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
- Go short following a bearish price action reversal on the H1 time frame immediately upon the next touch of 115.45.
- 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 Trades
- Go long following a bearish price action reversal on the H1 time frame immediately upon the next touch of 114.08 or 113.55.
- 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
The price rose again yesterday, making a new multi-week high price. Volatility in this pair is the highest of all the major Forex currency pairs, and this pair is at the heart of the market. There is a long-term bullish trend, and the price has risen strongly in recent days, but for the first time in a while the price action suggests that the price may fall bearishly back below the support around 114.00 and perhaps pull back more deeply over the coming hours. If the support level at 114.08 continues to hold as the New York session gets underway, it will be a very bullish sign, pointing to new highs in the short term. There are no resistance levels nearby, but the 115.00 has a psychological importance and may be resistant as a round number
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There is nothing scheduled concerning the JPY. Regarding the USD, there will be a release of PPI and Unemployment Claims data at 1:30pm London time.