Yesterday’s signals were not triggered as there was no bullish price action at 112.91.
Today’s USD/JPY Signals
Risk 0.75%.
Trades must be entered from 8am New York time to 5pm Tokyo time, during the next 24-hour period only.
Short Trades
- Short entry following a bearish price action reversal on the H1 time frame immediately upon the next touch of 112.93 or 113.25.
- 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
- Long entry following a bearish price action reversal on the H1 time frame immediately upon the next touch of 111.95.
- 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
The action has turned bearish, with the short-term bearish trend line holding yesterday, new resistance printing at 113.25, and the former support at 112.91 breaking down and probably turning to become new resistance also. At the time of writing, the price may be running into support in the area of 112.40. The Yen is strong as a safe haven and the U.S. Dollar is weak as the prospect of political instability in the U.S.A. comes to the fore in market sentiment.
There is nothing scheduled today concerning the JPY. Regarding the USD, there will be a release of Crude Oil Inventories data at 3:30pm London time.