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
- Go short following a bearish price action reversal on the H1 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 H1 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
I wrote yesterday that everything points to higher prices still, and we have seen higher prices, although the recent swing highs in the 113.20 area are still acting as a cap. The buying was just above the psychologically important level of 112.50. The picture still looks bullish although activity may tail off in the Yen until after New York opens. There is no reason to turn bearish, and the pair has entered a long-term bullish trend, so I maintain a bullish bias.
There is nothing due today concerning either the JPY or the USD.