Last Thursday’s signals were not triggered, as there was no bullish price action at 106.14.
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 hours only.
Short Trades
Go short following a bearish price action reversal on the H1 time frame immediately upon the next touch of 106.80, 107.48, or 108.05.
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 trade entry following a bullish price action reversal on the H1 time frame immediately upon the next touch of 106.03 or 105.52.
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
I wrote last Thursday that all the signs were bearish, except for the price getting very close now to a key support level at 106.14… I think it is more likely that the level will not hold. This turned out to be correct as the long-term bearish trend continued to play out, but the price turned around at a lower support level at 105.51, rising risen from there to now trade well above the new support level at 106.03. A mildly bullish sign is the break of the steepest bearish price channel, which is shown in the price chart below, yet I doubt this is going to be very important. The most likely scenario is a resumption of the downwards trend, probably at the next resistance level of 106.80.
There is nothing due today concerning either the JPY or the USD. It is a public holiday in the U.S.A.