Yesterday’s signals were not triggered as neither of the key levels were ever reached.
Today’s USD/JPY Signals
Risk 0.75%.
Trades must be taken from 8am New York time until 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 112.85.
- 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 bullish price action reversal on the H1 time frame immediately upon the next touch of 111.25.
- 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
I wrote yesterday that the support level at 112.17 did not look as if it was going to hold, so we may be due a deeper pull back, although I was keeping a bullish bias. In fact, the price fell with some strength as the Yen continued to benefit from higher Korean tension. The price is now approaching the key support level at 111.25 which I anticipate will most likely hold. There are no obvious resistance levels anywhere nearby, but the area around 112.50 is important both technically and psychologically, so the new upwards trend which appeared to be just beginning is seemingly over before it ever got started. A break below 111.25 would be a bearish sign. I have no bias and 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.
There is nothing due today concerning the JPY. Regarding the USD, there will be a release of CB Consumer Confidence data at 3pm London time, followed by the Chair of the Federal Reserve speaking at 5:45pm.