Last Thursday’s signals were not triggered as there was no suitable price action at 111.35.
Today’s USD/JPY Signals
Risk 0.75%.
Trades may only be taken between 8am New York time and 5pm Tokyo time, over the next 24-hour period.
Short Trades
- Short entry following a bearish price action reversal on the H1 time frame immediately upon the next touch of 111.29 or 111.72.
- 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
- Long entry following a bearish price action reversal on the H1 time frame immediately upon the next touch of 111.35.
- 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
This pair can be said to be in a weak long-term bearish trend, but unlike several other USD currency pairs, there is not much of a trend. The price is really in a wide, bounce range between 114.50 and approximately 109.50. The big story in the chart below is the wide, gentle bearish channel which currently contains the price. Within this channel, there is a narrow bearish wedge. A breakout above the upper trend line of the wedge looks to be the most likely and predictable short-term outcome, which would probably see the price rise further to at least 111.29.
There is nothing due today concerning the JPY or the USD.