Last Thursday’s signals were not triggered, as none of the specified levels were ever reached during that session.
Today’s USD/JPY Signals
Risk 0.75%.
Trades must be taken between 8am New York time and 5pm Tokyo time, over the next 24-hour period only.
Short Trade 1
Short entry following a bearish price action reversal on the H1 time frame immediately upon the next touch of 115.45.
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 Trades
Long entry following a bullish price action reversal on the H1 time frame immediately upon the next touch of 113.09 or 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
It was becoming more obvious last Thursday that the strong break of the zone of resistance just below 113.00, plus the long-term trend, was signalling that the price was ready to move up. We have had this upwards movement over the past few days, boosted by the Japanese election, the result of which now seems to be a stronger mandate for the existing government. The price opened with a gap up that has not quite been filled, but as it is a small gap, it may not be filled any time soon. The price has sold off from its highs and may need to pull back further, but this pair looks like a good bet to rise again, at least during the first three days of this week. There are no obvious likely resistance levels anywhere below 115.00, so the price certainly has a lot of room to rise. It makes sense to take a bullish bias on this pair and the support level at 113.09 looks strong.
There is nothing significant due today concerning either the JPY or the USD.