Yesterday’s signals were not triggered, as neither of the key levels were reached.
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 hours only.
Short Trade
Short entry following a bearish price action reversal on the H1 time frame immediately upon the next touch of 110.95, provided there were no hourly candle closes above 111.00 since 8am London time.
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 Trade
Long entry following a bullish price action reversal on the H1 time frame immediately upon the next touch of 109.85 or 109.54.
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 price reaches 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
The technical picture is almost the same as it was yesterday, with 109.85 looking like a very key support level which could provide a long-term bottom due to its confluence with a major psychological level at 110.00, and with 110.95 continuing to hold cleanly above, but not being quite reached within the past 24 hours to provide a new short trade entry. The only change is that the bearish trend line has now been broken, which is a minor bullish sign. A break above 110.95 would make the picture much more bullish over the short term.
I have no directional bias, there might be either a long or short opportunity today, or even both. At the time of writing, the price action suggests we have already seen a rejection of the 110.95 area late in the Asian session from which the price is now in the process of falling.
There is no long-term trend, the higher time frame charts clearly show ranging conditions are prevalent in this currency pair.
There is nothing important due today concerning either the JPY or the USD.