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, 111.29 or 111.72.
- 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
I wrote yesterday that if the resistance at 110.84 held, it would be a bearish sign, although I would not look to trade this level today. The level did not really hold, and we can draw a short-term bullish trend line. However, a new slightly higher level can be drawn, and there are several other resistance levels not far above. Therefore, overall this pair has a ranging, directionless personality at the moment, and should not be traded except for either very long or short-term trades off rejections of key levels. I have no bias and am avoiding trading this pair now.
If the Non-Farm Payroll data tomorrow is much stronger than expected, this pair could be one of the prime movers so might be used to take advantage of such a movement.
There is nothing due today concerning the JPY. Regarding the USD, there will be a release of Unemployment Claims at 1:30pm London time followed by ISM Non-Manufacturing PMI data at 3pm.