Yesterday’s signals were not triggered, as none of the key levels were ever reached.
Today’s USD/JPY Signals
Risk 0.75%.
Trades may only be entered from 8am New York time to 5pm Tokyo time, over the next 24-hour period.
Short Trades
Short entry following a bearish price action reversal on the H1 time frame immediately upon the next touch of 105.90, 106.10, or 106.75.
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 Trade
Long entry following a bullish price action reversal on the H1 time frame immediately upon the next touch of 105.26.
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 trade is 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 I had no directional bias, and that the price was likely to consolidate within its zone. This was an accurate approach, as the price has in fact remained stuck between 105.26 and 105.90. The price is currently moving up after making a low not far from 105.26. There is a long-term bearish trend, but there seems to be plenty of support at 105.26 and below. I maintain no directional bias and would be equally happy at trade entries off rejections of any levels. If the price makes a sustained break above 105.90, or the bearish trend line shown in the price chart below which is currently confluent with the resistance level at 106.10, that would be a sign that a more bullish picture is taking shape.
There is nothing due today concerning the JPY. Regarding the USD, there will be a release of Final GDP data at 12:30pm London time, followed by Crude Oil Inventories at 2:30pm.