Yesterday’s signals were not triggered as there was no bullish price action at 111.95.
Today’s USD/JPY Signals
Risk 0.75%.
Trades may only be entered between 8am New York time and 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 111.59, 111.74 or 111.95.
- 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 110.00.
- 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 fell very sharply and strongly yesterday, confirming a new long-term bearish trend, with the price falling back into its old bearish channel. We are seeing a small bounce now, and it looks as if there will be a period of consolidation over the short-term. I would be nervous of taking any long trades unless there was to be a convincing bullish turn at or very close to the large round number at 110.00. In the meantime, the best trade would be a short following a failure to rise at 111.59.
Regarding the USD, there will be a release of Unemployment Claims data at 1:30pm London time. There is nothing due concerning the JPY.