By: DailyForex
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 entered between 8am New York time and 5pm Tokyo time, during the next 24-hour period.
Short Trade 1
- Short entry following a strongly bearish price action reversal on the 1H1 time frame H1H1H1 time frame immediately upon the next touch of 112.85.
- 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
- Long entry following a bullish price action reversal on the 1H1 time frame H1H1H1 time frame immediately upon the next touch of 111.25.
- 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 I would remain on the side-lines until we see what happens at 111.25 or alternatively 112.50 if 111.25 is not reached first. We have now broken up past 112.50 and a key bearish trend line, and the long-term resistance at 112.85 is being challenged by a fairly powerful bullish move originating from the supportive area around 111.25 – 111.50. This pair is now in a long-term bullish trend, and the short-term strength in the U.S. Dollar is helping. However, the U.S. Dollar has been stronger against the Euro and British Pound than it has against the Yen, but that might change.
I maintain a bullish bias and a break above 112.85 would be another bullish sign.
Regarding the USD, there will be a release of Core Durable Goods Orders at 1:30pm London time, followed by Crude Oil Inventories at 3pm. Concerning the JPY, the Governor of the Bank of Japan will be speaking at 7:35am.