Yesterday’s signals were not triggered as there was no bullish price action at 113.46.
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 114.08.
- 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
- Go long following a bearish price action reversal on the H1 time frame immediately upon the next touch of 112.91.
- 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 action has been choppy, with the price not becoming either clearly bearish or bullish, and trend lines and supportive levels becoming invalidated. The dominant feature of recent days has been the bearish trend line shown in the chart below, the price needs to get established firmly above that and start to challenge 114.08 before the long-term bullish trend can be confidently believed in again.
There is nothing scheduled today concerning the JPY. Regarding the USD, there will be a release of Building Permits data at 1:30pm London time.