Yesterday’s signals were not triggered, as there was no bearish price action at 108.05.
Today’s USD/JPY Signals
Risk 0.75%.
Trades may only be entered between 8am New York time and 5pm Tokyo time, during the next 24-hour period.
Short Trade
Short entry following a bearish price action reversal on the H1 time frame immediately upon the next touch of 109.76.
Place 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 Trades
Long entry following a bullish price action reversal on the H1 time frame immediately upon the next touch of 108.05.
Place 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 had a bullish bias yesterday, which worked out very well, with the price breaking strongly and exponentially out of its price channel (shown in the chart below) and above the former resistance level of 108.05 which had held for a long time. The move may be running out of steam, but there is bullish momentum and room to rise higher. A bearish retracement would not be a great surprise today, but if the U.S. Dollar due later is positive, I think the price will rise higher still over the New York session and possibly the Asian session as well.
There is nothing due today concerning the JPY. Regarding the USD, there will be a release of CB Consumer Confidence at 3pm London time.