Last Thursday's signals were not triggered, as there was no bearish price action at 111.14.
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 only.
Short Trade
- Short entry following a bearish price action reversal on the H1 time frame immediately upon the next touch of 111.86.
- 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 Trades
- Long entry following a bullish price action reversal on the H1 time frame immediately upon the next touch of 110.94, 110.68, or 110.49.
- 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 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 above this trend line.
This was a great call, as the price did break bullishly above both the upper channel trend line and the horizontal resistance level at 111.14 and continued to reach a high price at about 111.50.
We are now experiencing a bearish retracement which can be drawn a small, short-term bearish price channel as shown in the chart below. There was an obvious pivotal level still at about 111.14 but it appears to have been invalidated.
This pair is in a weak long-term and medium-term bullish trend, so I think that if we again see a break above the nearest bearish trend line, the price will be likely to rise further. Therefore, I have a bullish bias above the upper channel trend line today.
There is nothing important due today concerning either the JPY or the USD.