Yesterday’s signals were not triggered, as the key levels were not reached during the specified session hours.
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.
Short Trades
- Go short following a bearish price action reversal on the H1 time frame immediately upon the next touch of 110.77 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 Trade 1
- Go long following a bearish price action reversal on the H1 time frame immediately upon the next touch of 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
We have seen some meaningful technical developments occur. The price has broken below the lower boundary of its gently bearish price channel. Furthermore, the price is approaching the lower end of the very wide consolidation range it has been trading within over the past several months, from about 109.82 to 114.50. The bearish movement has been intensifying, and will be facing a big test if it reaches 109.82. A break below that level will be a very bearish development, but I see a bullish reversal there as providing a possibly excellent long-term long trade opportunity. Meanwhile, before that happens, shorts at key levels from any bullish pull back look good.
There is nothing due today concerning the JPY. Regarding the USD, there will be a release of ISM Manufacturing PMI data at 3pm London time.