Last Thursday’s signals were not triggered, as none of the key levels specified were reached that day, although the low was just a few pips short of the support level given at 111.70.
Today’s USD/JPY Signals
Risk 0.75%.
Trades must be taken from 8am New York time until 5pm Tokyo time, during the next 24-hour period only.
Short Trades
· Go short following a bearish price action reversal on the H1 time frame immediately upon the next touch of 113.28, 113.57, or 114.07.
· 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 112.30 or 111.70.
· 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 had a bullish bias at the end of last week, which proved to be correct as the resistance at 112.73 is broken and erased from the chart. The pair is becoming more interesting, as its upside tends to rise with a bullish U.S. stock market, which is happening now. There is also technically a long-term bullish trend. The signs all point to higher prices, but this usually does not happen during the first part of the London session: the major rise today it likely to occur around the time New York opens. I have a bullish bias and the outlook is looking significantly more bullish on this pair, as the bearish trend lines are all broken.
There is nothing important due today concerning either the JPY or the USD.