Last Thursday’s signals were not triggered as the bearish price action took place slightly above 112.91, but the outside candle which formed there on the hourly chart would have produced a nicely profitable short trade if taken.
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
- Short entry following a bearish price action reversal on the H1 time frame immediately upon the next touch of 112.91 or 113.55.
- Place the stop loss 1 pip above the local swing high.
- Amend 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 Trades
- Long entry following a bearish price action reversal on the H1 time frame immediately upon the next touch of 111.95 or 111.59.
- Place the stop loss 1 pip below the local swing low.
- Amend 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
I wrote last week that the 112.91 level was looking more and more crucial for this pair, and it has held, which I thought was the more likely outcome. The situation is like that of the EUR/USD currency pair, which is also facing a very crucial resistance level at 1.1000. So, we have two of the three major Forex pairs on the brink of significant bullish breakouts, which seems like a pivotal moment where a trade opportunity giving hundreds of pips of profit would be more likely than usual to present itself. 
There is nothing due today concerning either the JPY or the USD.