Yesterday’s signals were not triggered, as there was no bullish price action at 112.30.
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 112.30 or 113.28.
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 111.70 or 111.39.
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 was still expecting a new bullish movement yesterday, but I thought that the price would need to break the round number at 113.00 to really get going, which it never even touched, yet I entered myself long early at 112.85 and lost the trade. The bullishness has really evaporated now, with the price breaking below the former support at 112.30 which has now probably become a resistance level. It seems the long-term picture is just one of continual wide ranges, with no end in sight. It makes trading this pair very challenging unless you just follow the turns in the candlestick patters and mostly ignore support and resistance. I have no directional bias on this Forex currency pair now.
There is nothing important due today concerning the JPY. Regarding the USD, there will be a release of the ADP Non-Farm Employment Change at 1:15pm London time, followed by Crude Oil Inventories at 3pm.