Yesterday's signals were not triggered, as there was no bearish price action when the price reached 110.20.
Today’s USD/JPY Signals
Risk 0.75%.
Trades may only be taken 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 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 Trade
Go long following a bullish price action reversal on the H1 time frame immediately upon the next touch of 110.00
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 have been saying for many days now that this pair is essentially zig-zagging backwards and forwards without really going anywhere. This is still the case, and the technical picture, as can be seen in the price chart below, is conflicted. The price is both within an obvious wide bearish descending channel, but at the same time it has printed higher support at 110.00 and can be said to be in a very weak long-term bullish trend. Overall, I think this pair is range-bound, and if you are going to trade it, be very conservative about profit targets. I have no directional bias but I would be very bullish if the price were able to get established above 110.85.
There is nothing important due today concerning the JPY. Regarding the USD, there will be a release of Final GDP data at 1:30pm London time.