Yesterday’s signals were not triggered as none of the key levels were ever reached.
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 Trade 1
· Short entry following a bearish price action reversal on the H1 time frame immediately upon the next touch of 112.93.
· 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.
· 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 111.83.
· 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.
· 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
There is no change to the technical picture: the price continues to move upwards within a wide and expanding bullish channel, and the move is getting stronger with the Yen acting as one of the weakest currencies right now. The resistance beginning at 112.93 is likely to be solid. There is new support at 111.83.
I maintain a bullish bias as we have a strengthening, rising pattern within a bullish channel.
There is nothing due today concerning the JPY. Regarding the USD, there will be a release of Final GDP and Unemployment Claims data at 1:30pm London time.