Yesterday’s signals were not triggered as there was no bearish action within the resistant zone identified from 111.47 to 111.67.
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 109.82.
- 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
The price has continued to rise following its break up out of its long-term bearish channel, which is an important bullish technical sign. Even more bullish is the fact that the price has managed to trade quite consistently above the top of the resistant zone capped at 111.67, so the path is now wide open to the next resistance at 112.93. The recent strengthening of the U.S. Dollar is being felt heavily in this pair, so although there is no clear long-term trend, the short and medium-term trends are clearly bullish.
There is no clear support for quite a long way down, but pullbacks to 111.00 or 110.50 could be interesting long trade opportunities if there are bullish reversals there.
There is nothing due today concerning either the JPY or the USD.