Yesterday’s signals were not triggered, as there was insufficiently bullish price action at 110.50.
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 Trades
Short entry following a bearish price action reversal on the H1 time frame immediately upon the next touch of 109.85, 110.25 or 110.52.
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 109.54 or at the trend line currently sitting at about 109.18.
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 last 24 hours has seen a strong resumption of the bearish trend on the USD, with the Japanese Yen one of the prime gainers. The price has easily broken below the psychologically important 110.00 level, even using it as resistance for fresh selling, flipping previously supportive levels to become new support. At the time of writing, the level at 109.54 is still holding as support, but it looks threatened. Below that, at 109.20, there is a very long-term trend line which might also provide support.
There is a long-term bearish trend and I have a bearish bias.
There is nothing important due today concerning the JPY. Regarding the USD, there will be a release of Crude Oil Inventories data at 3:30pm London time.