Yesterday's signals were not triggered, as there was no bearish price action at 110.79.
Today’s USD/JPY Signals
Risk 0.75%.
Trades may only be entered between 8am New York time and 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 111.41 or 111.75.
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 110.79 or 110.55.
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 the price now looked heavy, and there was nothing to hold it up, so I had a bearish bias below 110.55. I was completely wrong, as the price quickly turned very bullish and the price managed to slice cleanly through resistance, print new support, and drive upwards to new highs above 111.00. The bullishness was strong and consistent, but the price has now cooled off and pulled back, which is typical for this pair during the early part of the London session. I have a bullish bias today, and I expect the price to start rising again as New York comes online later. Be extremely careful about taking a short trade today – I would greatly prefer a bearish reversal at 111.75 than at 111.41.
There is nothing important due today concerning either the JPY or the USD.