Last Tuesday’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 Trades
- Go short following a bearish price action reversal on the H1 time frame immediately upon the next touch of 111.48 or 111.67.
- 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 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 is in a long and medium-term downwards trend. It trades within a channel that has two potential upper trend lines. At the time of writing, the price is struggling to break up past the first (inner) upper trend line, as shown in the chart below. A false break is quite likely as there is going to be resistance all the way up to 111.67. All these factors suggest this pair is at a pivotal moment and might make a downwards movement which would be a good trade. However, it should be noted that the downwards trend has been bouncy, with deep pullbacks, making it challenging to trend over the short term.
There is nothing due today concerning the JPY. Regarding the USD, there will be a release of the ADP Non-Farm Employment Change forecast at 1:15pm London time, followed by Unemployment Claims at 1:30pm, ISM Manufacturing PMI at 3pm, and Crude Oil Inventories at 4pm.