Last Thursday's signals were not triggered, as there was no bullish price action at 111.50.
Today’s USD/JPY Signals
Risk 0.75%.
Trades must be taken from 8am to 5pm Tokyo time, over the next 24-hour period only.
Short Trades
Short entry following a bearish price action reversal on the H1 time frame immediately upon the next touch of 111.50 or 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 Trade
Long entry following a bullish price action reversal on the H1 time frame immediately upon the next touch of 110.86.
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 I would be bullish today at a strongly bullish bounce at 111.50 or following a convincing break above 111.86. Neither scenario materialized. The price sold off quite strongly from the 111.86 area and is now recovering with smaller bullish waves. There is a lot of support nearby, so it is likely to be hard for the price to fall here before rising first, but the bullishness does not look convincing yet. I would take a bullish bias if the price can get established above 111.25. As the U.S. is on holiday today, there is unlikely to be much action until Tokyo opens later. There is no real long-term trend here, so it is a good idea to be conservative with profit-taking.
There is nothing important due today concerning either the JPY or the USD. It is a public holiday in the U.S.A. today.