Yesterday's signals were not triggered, as the bearish rejection of 113.13 did not happen until the end of the Asian session.
Today’s USD/JPY Signals
Risk 0.75%.
Trades must be taken from 8am New York time until 5pm Tokyo time, over the next 24-hour period.
Short Trade
Short entry following a bearish price action reversal on the H1 time frame immediately upon the next touch of 113.13.
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 112.79 or 112.06.
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 yesterday that I had a slightly bullish bias, and this worked out well as the price continued to rise to hit the next resistance level of 113.13. However, the bullish momentum has slowed down over recent hours, and it appears that the Dollar is progressing more strongly against the British Pound and Euro. The action still looks a little bullish, despite the bearish bounce. I would take a bullish bias above 113.13 or if there is a retracement and strongly bullish bounce at 112.79.
There is nothing important due today concerning the JPY. Regarding the USD, there will be a release of Building Permits data at 1:30pm London time, followed by testimony by the Chair of the Federal Reserve before Congress at 3pm and Crude Oil Inventories at 3:30pm London time.