Yesterday's signals were not triggered, as none of the key levels were ever reached.
Today’s USD/JPY Signals
Risk 0.75%.
Trades may only be taken from 8am New York time until 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 110.85.
Place the stop loss 1 pip above the local swing high.
Adjust the stop loss to break even once the trade is 20 pips in profit.
Take off 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 109.92 or 109.60.
Place the stop loss 1 pip below the local swing low.
Adjust the stop loss to break even once the trade is 20 pips in profit.
Take off 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 no directional bias below 110.85 and this level has not been exceeded or even touched. There has been no change to the technical picture, and I have also said trading this pair has been difficult – it remains so. There is a very weak long-term bullish trend, but this pair is still essentially zig-zagging. The problem is that the Yen fluctuates with political and trade tensions, which tends to cause interruptions to consistent multi-day flows. I again have no bias today, although I would become bullish following a sustained break above 110.85. There are likely to be better opportunities today in the European currency pairs.
There is nothing important due today concerning either the JPY or the USD.