Yesterday's signals were not triggered, as none of the key levels were ever reached.
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 111.86.
- 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 110.94, 110.68, or 110.49.
- 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 if we again see a break above the nearest bearish trend line, the price would be likely to rise further. Therefore, I had a bullish bias above the upper channel trend line. We did eventually see such a bullish break during the previous Asian session, which took the price up only by about 20 pips before it fell back to where the price had been previously, so it was neither a success nor a failure.
It looks as if there is not going to be a great deal of movement in this pair, with the real action more in the European currency pairs. I would continue to be bullish over the medium-term if the support level at 110.94 can survive another test from above.
There is nothing important due today concerning either the JPY or the USD.