Yesterday’s signals were not triggered, as there was no bearish price action when the price reached 105.27.
Today’s USD/JPY Signals
Risk 0.75%.
Trades must be taken between 8am New York time and 5pm Tokyo time, during the next 24-hour period.
Short Trades
· Go short following a bearish price action reversal on the H1 time frame immediately upon the next touch of 105.90, 106.10, or 106.75.
· 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.
· 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
· Go long following a bullish price action reversal on the H1 time frame immediately upon the next touch of 105.26.
· 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.
· Remove 50% of the position as profit when the trade is 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 yesterday that the reaction of the price at 105.27 would be key to determining the kind of day this currency pair would have, and I was correct. There was a firm bullish break of the level which resulted in the price continuing to advance, despite the long-term bearish trend. Some of this is because stock markets have rebounded strongly after heavy losses, and these days the Yen tends to be highly negatively correlated with the American stock market, as it is used as a safe-haven when the market goes risk-off.
Both support and resistance levels look interesting, the price might bounce in either direction today: I have no directional bias. The price is likely to consolidate within its zone. A break back below 105.25 would be a bearish sign.
There is nothing due today concerning either the JPY or the USD.