Yesterday’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 entered from 8am New York time to 5pm Tokyo time, over the next 24-hour period only.
Short Trade
Short entry following a bearish price action reversal on the H1 time frame immediately upon the next touch of 110.52.
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 Trade
Long entry following a bullish price action reversal on the H1 time frame immediately upon the next touch of 110.02.
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 I had a bullish bias, and this paid off, with the price breaking above the psychologically important round number at 110.00 which now may be supportive. The Dollar has strengthened and there is a very weak long-term bullish trend here. The Dollar has advanced much more strongly against the Euro. The current price action of recent hours is suggesting a pull-back to the 110.00 area. A break below that would be a sign of a more bearish picture. If the level holds strongly as support, it should indicate that a stronger bullish move is about to happen. I have a cautiously bullish bias on this currency pair.
There is nothing due today concerning the JPY. Regarding the USD, there will be a release of Building Permits data at 1:30pm London time followed by Crude Oil Inventories data at 3:30pm.