Yesterday’s signals were not triggered, as there was insufficiently bullish price action at either 109.54 or at the trend line below that.
Today’s USD/JPY Signals
Risk 0.75%.
Trades may be taken between 8am New York time and 5pm Tokyo time, over the next 24 hours.
Short Trades
Go short following a bearish price action reversal on the H1 time frame immediately upon the next touch of 109.46, or 109.85.
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 108.58 or 108.05.
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 price reaches 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 correct yesterday in taking a bearish bias, as the price has continued to fall for another day, with the Yen being one of the stronger movers against a weakening U.S. Dollar. The last day say not only the support level at 109.54 break down, but also a very long-term supportive trend line at 109.20. The price action has become choppier, with buyers stepping in over recent hours, but the picture still looks bearish, so I have no reason to change my directional bias. The short-term bearish trend is also in line with a more clearly bearish long-term trend.
There is nothing important due today concerning either the USD or JPY.