Last Thursday’s signals were not triggered, as there was no bearish price action at 113.28.
Today’s USD/JPY Signals
Risk 0.75%.
Trades must be entered from 8am New York time until 5pm Tokyo time, during the next 24-hour period only.
Short Trade
Go short following a bearish price action reversal on the 1H1 time frame H1H1H1 time frame immediately upon the next touch of 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 113.28 or 112.35.
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 last Thursday that I saw the bulls as more likely to prevail over the short-term, and this is what has happened, with the price rising in line with the weak but present bullish long-term trend, flipping resistance at 113.29 into support and invalidating the resistance level close to 113.50. If 113.28 holds as support, the price is likely to reach 114.00 soon. There is a weak long-term bullish trend, and the U.S. is firm while the Yen is relatively weak, so if “risk off” sentiment doesn’t emerge, the pair should continue to rise, even if it is a relatively slow rise. I have a cautiously bullish bias.
There is nothing important due today concerning either the JPY or the USD.