Yesterday's signals were not triggered, as there was no bearish price action at 110.65.
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 Trade
Go short following a bearish price action reversal on the H1 time frame immediately upon the next touch of 111.14.
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 110.68, 110.49, or 110.04.
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 would have a bearish bias over the coming hours as long as the price continues to fall from 110.47, even if slowly, but I noted there was new support at 110.04 which was both a major first higher low, and confluent with a very large psychological level at 110.00, so I was only bearish with extreme caution. This was a reasonable call as the price soon turned bullish and rose for the rest of the day.
The technical situation has now become very interesting, as we see the price rise has continued to fail at the upper trend line of the long-term bearish price channel, which is visible in the price chart below. The USD is quite bullish now, but there is resistance here. A bullish breakout above the trend line, followed by a further bullish break above the horizontal resistance level at 111.14, would be a major sign of a more bullish picture for this pair, which currently has no real long-term price trend. I would take a bullish bias today above this trend line.
There is nothing important due today concerning either the JPY or the USD.