Yesterday’s signals were not triggered as the bullish price action took place some way below the support level identified at 108.69.
Today’s USD/JPY Signals
Risk 0.75%.
Trades must be taken between 8am New York time and 5pm Tokyo time, over the next 24-hour period only.
Short Trade 1
- Go short following a bearish price action reversal on the H1 time frame immediately upon the next touch of 110.24.
- 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
- Go long following a very strong and convincing bullish price action reversal on the H1 time frame immediately upon the next touch of 109.55.
- 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
This pair is in a long-term downwards trend, and has recently made a couple of strong pushed down from 109.80. There has been strong support at 108.69, which was temporarily broken during the Asian session after North Korea tested a missile over Japanese airspace, which triggered alarms. These tests paradoxically always boost the Yen, and although the Yen strength has persisted and the action still looks bearish, it is notable that the price has recovered to above the 108.69 level. If the price soon gets established below that level, we are likely to see a further strong fall.
There is nothing due today concerning the JPY. Regarding the USD, there will be a release of the ADP Non-Farm Employment Change forecast at 1:15pm London time, followed by Preliminary GDP data 15 minutes later, and then finally Crude Oil Inventories numbers at 3:30pm.