Yesterday’s signals were not triggered as there was no bearish price action at either 112.93 or 113.26.
Today’s USD/JPY Signals
Risk 0.75%.
Trades must be entered between 8am and 5pm Tokyo time, during the next 24-hour period only.
Short Trades
- Short entry following a bearish price action reversal on the H1 time frame immediately upon the next touch of 114.08.
- 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 111.74.
- 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
I wrote yesterday that a sustained break above 113.26 would be a very bullish sign. Although the price did break up above that level, it was unable to hold up there, but recent price action has undoubtedly made the outlook more bullish, erasing the previous zone of resistance and breaching the top of the previous bullish price channel.
The outlook remains bullish and the dominant longer-term trend is certainly bullish.
There is nothing due today concerning either the JPY or the USD. It is a public holiday in the U.S.A.