Yesterday’s signals were not triggered, as there was insufficiently bullish price action when the price reached 113.09.
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
· Go short following a bearish price action reversal on the H1 time frame immediately upon the next touch of 113.28.
· 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 112.06.
· 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
Yesterday I was looking for a bullish bounce off the lower triangle trend line, which can still be seen in the chart below, although I was cautious about it. The scenario played out the other way, with the price breaking below the lower trend line and refusing to be held at the support level of 113.09. On its way down, in addition to invalidating that support level, it also printed new resistance at 113.28. The long-term bullish trend remains intact, but is looking much weaker, and these new developments have produced a considerably more bearish technical picture.
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.