Yesterday’s signals were not triggered, as none of the key levels were reached during the specified time.
Today’s USD/JPY Signals
Risk 0.75%.
Trades may only be entered between 8am New York time and 5pm Tokyo time, during the next 24-hour period.
Short Trades
Short entry following a bearish price action reversal on the H1 time frame immediately upon the next touch of 113.28, 113.57, or 114.07.
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 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
The price action was making this pair look considerably more bearish yesterday. I thought that a move down to the next support level at 112.06 was next on the agenda. The price did indeed fall, but made a relatively strong bullish bounce at 112.50, and is now approaching very close to the nearest resistance level at 113.28. Due to the strength of this bullish bounce, I am doubtful as to how good any short trade is going to be here. It looks as if it is going to be dangerous to trade this currency pair in any direction now over the next few hours. I have no bias for the time being as it looks as if the price could go anywhere. If I had to pick a potential trade that would look good, I would go for a short trade following a bearish reversal at 113.57.
There is no long-term trend. I have a slight bearish bias.
There is nothing important due today concerning the JPY. Regarding the USD, there will be a release of Unemployment Claims data at 1:30pm London time.