Last Thursday’s signals were not triggered as there was no bullish price action when the price reached 109.52.
Today’s USD/JPY Signals
Risk 0.75%.
Trades must be entered from 8am New York time until 5pm Tokyo time, over the next 24-hour period.
Short Trades
Short entry following a bearish price action reversal on the H1 time frame immediately upon the next touch of 109.52 or 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 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 continued to take a mildly cautious bullish bias last Thursday and that did not work out very well. The price fell below the support at 109.52 but has been bought below 109.00 and now looks to be rising. The U.S. Dollar is very strong, but the Yen is also quite strong, at least some of the time, so it looks as if this pair is not at the heart of the market’s focus right now. The market is much more focused on the GBP/USD and EUR/USD currency pairs.
If I had to make a forecast, I think the price will reach 109.52 over the next 24 hours, but I expect this pair will do relatively little today. There are likely to be better opportunities elsewhere.
There is nothing due today concerning either the JPY or the USD.