Yesterday's signals were not triggered as the price never reached either of the levels, although the low of the day was just a pip or so off the support level identified at 110.94.
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 yesterday that it looked as if there was 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 could survive another test from above.
This was a very accurate prediction, as the price has continued to remain within the range of the previous few days, and a bearish trend line can be drawn connecting the recent tops, as shown in the chart below. The support at 110.94 has continued to hold.
If there is any kind of trend in this pair, it is a slightly bullish one. Support continues to hold, and it feels as if there could be a bullish breakout later, which would probably be triggered by a strong U.S. GDP number when it is released later during the New York session. Therefore, I would be bullish above 111.40, or if there is a bearish retracement followed by a strong bullish bounce at either 110.94 or 110.68.
There is nothing important due today concerning the JPY. Regarding the USD, there will be a release of Preliminary GDP data at 1:30pm London time followed by Crude Oil Inventories at 3:30pm.