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 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 109.00.
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 wrote yesterday that there was no reason to stop being bullish, but the move up might well slow down now. I was correct as the price did continue to rise and at a slightly slower pace. There is no change to the technical picture, in fact the general bullishness is confirmed by new flipped resistance to support at the round number of 109.00. I maintain a bullish bias, although action is likely to slow down as the day goes on and we approach the Bank of Japan’s monthly policy input.
Regarding the USD, there will be a release of Core Durable Goods Orders data at 1:30pm. Concerning the JPY, the Bank of Japan will release its Policy Rate, Monetary Policy Statement, and Outlook Report late in the forthcoming Asian session.