Yesterday’s signals were not triggered, as none of the key levels were 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
Go short following a bearish price action reversal on the H1 time frame immediately upon the next touch of 109.13.
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
Go long following a bullish price action reversal on the H1 time frame immediately upon the next touch of 108.05 or 107.50.
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 the technical picture is unchanged, and I again had no directional bias. I was looking to fade any key levels after a clear reversal become apparent, but I doubted there would be much price movement in this currency pair as both the Yen and Dollar were moving together to a strong extent. This turned out to be a good call, with the price remaining within the range after coming very close to the key resistance level at 109.13, which was the high of the day. There has been no change to the picture, the price is still ranging between roughly 108.00 and 109.00 with no obvious trend on any time frame. For these reasons, I have no directional bias today, and I would stand aside from this pair – any good opportunities today will probably arise in other Forex currency pairs.
There is nothing due today concerning the JPY. Regarding the USD, there will be a release of Crude Oil Inventories data at 4pm London time.