Last Wednesday’s signals were not triggered as none of the key levels have yet been reached, although the two lowest prices since then have both come just a few pips above the support level identified at 112.29.
Today’s USD/JPY Signals
Risk 0.75%.
Trades may only be entered from 8am New York time to 5pm Tokyo time, during the next 24-hour period.
Short Trade 1
- Go short following a bearish price action reversal on the 1H1 time frame H1H1H1 time frame immediately upon the next touch of 113.71.
- 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 1H1 time frame H1H1H1 time frame immediately upon the next touch of 112.29.
- 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
There has been no real technical change since the middle of last week. The price again failed to hold above 113.20 following Friday’s release of Non-Farm Payrolls data, selling off quickly from the high to return to the general area of consolidation close to 112.50, above the key support at 112.29. There is still long-term strength in this pair, but it is becoming more muted. I would not turn more bearish until we see key support at 112.29 breaking down. Although I must maintain a slight bullish bias here, I would not be comfortable calling a real bullish trend until the price gets established above 113.50 and starts putting in some new high prices.
There is nothing significant due today concerning either the JPY or the USD. It is a public holiday in the U.S.A.