Yesterday’s signals were not triggered as none of the key levels were ever reached.
Today’s USD/JPY Signals
Risk 0.75%.
Trades may only be taken from 8am New York time until 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 112.93.
- 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.
- 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
- Go long following a bearish price action reversal on the H1 time frame immediately upon the next touch of 109.82.
- 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.
- 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
The price has pulled back from its highs, but still looks bullish. I have drawn a new supportive trend line just below where the price currently site – it is early, but fits the longer-term pattern, so some bullish bounce here would not be a surprise. Below that trend line, there may be minor support at about 110.90. There are no key resistance levels before 112.93, although 112.00 could act as a barrier with an upper channel trend line and round number confluence.
There is nothing due today concerning the JPY. Regarding the USD, there will be a release of Crude Oil Inventories data at 3:30pm London time.