Yesterday's signals were not triggered, as there was no bearish price action at 110.09.
Today’s USD/JPY Signals
Risk 0.75%.
Trades must be entered between 8am New York time and 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 110.85.
Put 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 ride.
Long Trades
Long entry following a bullish price action reversal on the H1 time frame immediately upon the next touch of 109.92 or 109.60.
Put 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 ride.
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 had no directional bias yesterday, which worked quite well as the price has continued to zig-zag with relative unpredictability. This makes trading this pair difficult. There is a weak long-term bullish trend, but the Yen fluctuates with political and trade tensions, which tends to cause interruptions to consistent multi-day flows. It all means this pair is difficult to trade unless you are scalping or otherwise going for conservative profit targets. I have no bias again today, but I would become much more bullish if the price can make a strong movement to get established above the key resistance level at 110.85.
There is nothing due concerning the JPY. Regarding the USD, there will be a release of Crude Oil Inventories data at 3:30pm London time.