Last Thursday’s signals were not triggered, as neither of the key levels specified 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 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 Trade 1
Long entry following a bullish price action reversal on the H1 time frame immediately upon the next touch of 113.09.
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
This pair is looking very interesting. Technically, the price is in a long-term bullish trend, and over the medium-term it is also in a bullish price channel. However, the confluence of resistant trend lines above 114.40 is suppressing the price. At the time of writing, the price looks to be turning bullish at the lower bullish trend line, suggesting a long trade entry might make a great trade here, although I would want to see the price above the minor resistance at about 113.80 first before entering. The London open can also be a very unpredictable time for this pair, so it is probably best to wait a little while longer.
Although the outlook seems bullish, it is worth being quite conservative in terms of profit targets, as the area above 114.25 has been pivotal over the long-term, and can be expected to provide strong resistance all the way up to 115.00 for a while longer yet.
There is nothing due today concerning the USD. Regarding the JPY, there will be a release of the Bank of Japan’s Monetary Policy Statement, Outlook Report and Policy Rate late in the Asian session, followed by the usual press conference at 7:30am London time.