Yesterday’s signals were not triggered, as there was insufficiently bullish price action at 112.73 or 112.53.
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 hours only.
Short Trade
· Go short following a bearish price action reversal on the H1 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 112.73 or 112.53.
· 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 was correct yesterday in expecting that the short-term upwards move would probably fail at the recent high of 113.40, as the high of the day was just a pip or so below that level. The price has moved down but, not surprisingly, made a bullish bounce at the psychologically key 112.50 level. There price is likely to continue to range, with no dominant trend, and with relatively low volatility. This means that this pair is probably not going to be of interest to anyone except scalpers looking for a few pips from bounces rejecting key levels, which are likely to happen predictably in these range-bound conditions.
There is nothing important due today concerning either the USD or the JPY.