Last Thursday's signals were not triggered, as the bullish price action took place a little way below 109.92.
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 109.60 or 110.20.
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 109.07.
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 wrote last Thursday that I had no directional bias, noting that this pair is essentially zig-zagging backwards and forwards without really going anywhere. There has been no change to this situation and it is becoming hard to trade this pair except for small scalps. The problem is that both currencies are relatively strong, so the price tends not to go anywhere. I again have no bias today and would avoid trading this pair, but I do note there is a little more strength in the Yen, and that the picture may start to look more bearish if the price can get established below 109.00.
There is nothing important due today concerning either the JPY or the USD.