Yesterday's signals were not triggered, as there was no bullish price action at any of the support levels which were reached.
Today’s USD/JPY Signals
Risk 0.75%.
Trades can only be taken 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 111.75 or 112.57.
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.
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
Go long following a bullish price action reversal on the H1 time frame immediately upon the next touch of 111.44, or 111.06.
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.
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 took a bullish bias until the ADP release provided the price was above 112.06. The price didn’t stay above 112.06 for long at all, but I was wrong in being overly bullish. Although the U.S. Dollar has been quite strong, it has been a case of a very strong Japanese Yen which has really caused the downwards movement here. Markets are paying most attention to any talk of tariffs and President Trump has again started signalling for new tariffs on Chinese imports, which always seem to boost the Yen. The price is now stuck in a narrow range between support and resistance, so I think the best approach would be for the price to break below 111.44 or to go long at a strong bullish bounce there, but to be very careful in taking profits. I would be bearish below 111.44 and bullish above 111.80 but keep a careful ear to the ground for any more tariff talk.
There is nothing important due today concerning either the JPY or the USD.