Yesterday’s signals were not triggered as there was no bearish price action when the level at 111.72 was 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 bearish price action reversal on the H1 time frame immediately upon the next touch of 112.36 or 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 H1 time frame immediately upon the next touch of 109.85.
- 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
This pair is still advancing and killing its old long-term bearish trend, which is truly wiped out now. The advance may begin to halt now at 111.72 although the crucial level where a short could be very interesting is 112.36 which is within an area that has been extremely pivotal over the long-term. This is at the heart of the market, which is dominated by risk-on / risk-off flow, with the USD representing risk and the JPY representing safety.
Unfortunately, it is not possible to identify and high-probability support levels before 109.85, which means there could be a sharp bearish movement from here.
There is nothing due today concerning the JPY. Regarding the USD, there will be a release of Building Permits at 1:30pm London time.