Yesterday’s signals produced a long trade entry from the bullish bounce at 113.28. It looks like the trade has run out of momentum, so it would probably be a good idea to exit right away if the trade is in profit.
Today’s USD/JPY Signals
Risk 0.75%.
Trades may only be taken between 8am New York time and 5pm Tokyo time, over 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 114.07 or 114.50.
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 Trades
Long entry following a bullish price action reversal on the H1 time frame immediately upon the next touch of 113.28 or 112.35.
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
I wrote yesterday that if 113.28 holds as support, the price is likely to reach 114.00 soon. The level at 113.28 has held, but trading has been very quiet, and it appears that the rise may be out of momentum, but it is difficult to say. 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 the JPY. Regarding the USD, there will be a release of PPI data at 1:30pm London time.