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 from 8am New York time until 5pm Tokyo time, during the next 24-hour period only.
Short Trades
· Go short following a bearish price action reversal on the H1 time frame immediately upon the next touch of 110.94 or 111.29.
· 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
· Go long following a bearish price action reversal on the H1 time frame immediately upon the next touch of 110.35 or 109.82.
· 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
The pair is essentially in both long and short-term consolidation patterns, albeit with a slight bearish bias over the long-term. The price is now caught between 110.94 and 110.35. Despite the consolidation, the action is not choppy, so rejections of key levels can be traded for conservative profit targets if required.
There is nothing due today concerning either the JPY or the USD.