Yesterday’s signals were not triggered as none of the key levels were 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 111.39.
- 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 continues to drift upwards within a wide and expanding bullish channel. The resistance beginning at 112.93 is likely to be solid. An interesting development is the appearance of new support at about 112.00, confluent with a whole number, but as the price is sitting right on it as at the time of writing, it is hard to judge whether it will prove to be good support.
There is no long-term trend but I maintain a slightly bullish bias as we have a rising pattern within a bullish channel.
Concerning the JPY, the Governor of the Bank of Japan will be speaking at 2:30pm London time. Regarding the USD, there will be a release of Crude Oil Inventories data at 3:30pm.