Yesterday’s signals were not triggered, as the support level identified at 107.48 has been broken before 8am New York time.
Today’s USD/JPY Signals
Risk 0.75%.
Trades must be taken from 8am New York time until 5pm Tokyo time, over the next 24-hour period only.
Short Trade
Go short following a bearish price action reversal on the H1 time frame immediately upon the next touch of 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.
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 106.72 or 106.03.
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.
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 wrote yesterday that the upwards movement already seems to have halted, close to the resistance level at 108.05. Subsequently, the level was not even toughed, and we now have the price consolidating and threatening to move down. It is interesting to note that even in the face of a strong Dollar, the Yen is starting to hold up and may benefit from a reversal. The resistance at 108.05 is reinforced technically by an old trend line, and the erasure of any support around 107.50, so I am now cautiously bearish over the short to medium terms.
Regarding the USD, there will be a release of Crude Oil Inventories data at 4pm London time. There is nothing due concerning the JPY.