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 to 5pm Tokyo time, during the next 24-hour period.
Short Trades
Go short following a bearish price action reversal on the H1 time frame immediately upon the next touch of 110.40, 110.58, or 110.86.
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 Trades
Go long following a bullish price action reversal on the H1 time frame immediately upon the next touch of 109.45 or 109.07.
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 wrote yesterday that I was weakly bullish above 110.00 and below 110.40. The price was able to rise above the psychologically important level of 110.00 yesterday but could not stay there, subsequently dipping below it where it still trades as at the time of writing. The situation here is unchanged: a very muted bullishness, requiring a strong bullish breakout to truly get going, which never comes. The bullishness is very week and needs to follow through soon or the price will start to decline again. There is a lot of resistance between 110.00 and 110.86 but if the price can punch through this, it should rise by a meaningful further distance. I have a very weak bullish bias on this pair today, noting that although the Dollar is slowly weakening, the Yen is also weakening at a slightly faster rate.
There is nothing due today concerning either the JPY or the USD.