Last Thursday’s signals were not triggered, as none of the key levels were ever reached.
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.
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 or 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 wrote last Thursday that I was still a little bullish and that 109.00 was likely to hold. This is what happened. The Bank of Japan’s monthly policy guidance was released on Friday and it had very little impact on the price. There is no change to the technical picture. The bullish move may have run out of steam. The price is above where it was 3 months ago, suggesting there is no serious bearish trend any more. I am still very slightly bullish but a break below the nearest trend line shown below 109.00 in the price chart below would imply that the price is likely to fall back down to the 108.05 area.
There is nothing due today concerning either the JPY or the USD.