Last Thursday's signals were not triggered, as there was no bearish price action when the price reached 111.00.
Today’s USD/JPY Signals
Risk 0.75%.
Trades may only be entered 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 111.75.
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.
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
Long entry following a bullish price action reversal on the H1 time frame immediately upon the next touch of 110.55.
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.
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 last Thursday that it looked likely that the price would continue downwards to reach 110.55 today and possibly even the big round number at 110.00, so I took a weak bearish bias. I was completely wrong, the price turned around that day and moved up to 111.20 without touching the support level at 110.55. The technical picture presented within the price chart below is a bearish wedge held up by the support level at 110.55. It is looking as if the price may break above the top of the wedge, which would be a bullish sign, at least over the short term. However, the Forex market is extremely quiet today, so even a bullish pop up probably won’t have far to run if it happens. I have no directional bias today on this currency pair.
There is nothing important due today concerning either the JPY or the USD.