Yesterday’s signals were not triggered as there was insufficiently bearish price action at 110.24.
Today’s USD/JPY Signals
Risk 0.75%.
Trades may only be entered from 8am New York time until 5pm Tokyo time, during the next 24-hour period.
Short Trade 1
- Short entry following a bearish price action reversal on the H1 time frame immediately upon the next touch of 110.94.
- 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
- Long entry following a bullish price action reversal on the H1 time frame immediately upon the next touch of 110.17 or 109.56.
- 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 noted yesterday that the price made a very strong bullish move by almost 200 pips, suggesting that the long-term bearish trend is probably over, and that we are set for a general rise in prices, and that this pair is now at the heart of the market. All of this is even more true today as the price continues to rise and look generally very firm. The long-term bearish trend is over, and if the upcoming U.S. due later today and especially tomorrow come in strong, then the rise should continue with some good momentum. We have probably made a long-term low price. Recent hours have seen a break above the upper limit of a bearish channel which has been in force for more than a month. If the price can get established above 111.00, this will be another major bullish technical change, as this area has acted as strong resistance for a long time.
There is nothing due today concerning the JPY. Regarding the USD, there will be a release of Unemployment Claims data at 1:30pm London time.