Yesterday’s signals were not triggered, as none of the key levels were ever reached.
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 trade 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 trade 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
I wrote yesterday that the price looked ready to rise again, having got quite near the support level at 113.09 and maintained its rhythm of bullish swings. This is in line with the long-term bullish trend. The price did move up, but the move faltered at about 114.00, the chart below showing how a slightly bearish short-term trend line can be drawn to mark this topping action. Although there are no key levels marked between 114.00 and 115.00 in the chart below, it is true that this has been a pivotal area for months, so the price is liable to find it very difficult to get established up there, at least until it is able to build further pressure after a consolidation or retracement. I suspect that we will see a bearish pullback over the short-term, but I prefer to wait to seek a long trade following such a pull-back, keeping a bullish bias.
There is nothing significant due today concerning the JPY. Regarding the USD, there will be a release of Core Durable Goods Orders at 1:30pm London time, followed by Crude Oil Inventories at 3pm.