Last Monday’s signals were not triggered, as none of the key levels were reached during the specified session.
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 entry into the zone between 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 Trades
Go long following a bullish price action reversal on the H1 time frame immediately upon the next touch of 112.77 or 112.57.
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
After being very quiet for several days, this pair has new life after yesterday’s very strong and decisive upwards move, which broke cleanly through a former resistance zone from 112.77 to 112.57. This area should now be support and the break is significant as 112.50 is a crucial psychological level. The price is again showing a long-term bullish trend. For these reasons, new long entries could be nicely profitable, with the pair returning to the heart of the Forex market. A bullish bounce following a pullback into the supportive zone below could be a perfect long trade set-up. The bearish trend line above the current price level, shown in the chart below, is not well-established over the long-term, so the price could have room to rise much further before encountering very strong resistance.
There is nothing significant due today concerning the JPY. Regarding the USD, there will be a release of Unemployment Claims data at 1:30pm London time.