Yesterday’s signals were not triggered as none of the key levels were ever reached.
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 110.94, 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 bullish price action reversal on the H1 time frame immediately upon the next touch of 109.75.
- 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
There has been no change from yesterday’s situation, which has been a sustained bullish break above the former bearish channel. The price so far has not managed to test the next resistance level at 110.94, but has got close to it, at which point its resistant effect made some impact upon the price. The price is no likely to consolidate below 110.94 until the FOMC release due later. If the release is very positive for the U.S. Dollar we will probably see a strong rise in this pair.
There is nothing due today concerning the JPY. Regarding the USD, there will be a release of Building Permits data at 1:30pm London time, followed by Crude Oil Inventories at 3:30pm and FOMC Meeting Minutes at 7pm.