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 115.45.
- 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 Trades
- Long entry following a bearish price action reversal on the H1 time frame immediately upon the next touch of 113.84 or 113.50.
- 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
This pair now is well established above the long-term bearish trend line, within a bullish price channel, both of which are very bullish signs. There is a new, higher support level at 113.84. All the technical indicators point to still higher prices, and my expectations last week that the price of this pair would continue to rise were met, and I do not see any reason at all to change my bullish outlook. Although there are no obvious key resistance levels until 115.45, it is quite probable there would be profit taking from 115.00 as it is an important psychological number, so progress above there could be slow. Additionally, the price is currently right at its upper channel trend line, and might find it hard to rise from there, suggesting a short-term bearish pull back is possible.
There is nothing due today concerning either the JPY or the USD.