Yesterday's signals were not triggered, as there was insufficiently bearish price action at 111.50.
Today’s USD/JPY Signals
Risk 0.75%.
Trades must be taken between 8am New York time and 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 111.86 or 112.15.
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 111.19 or 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 yesterday that 111.50 looked pivotal, and if the price could get above it during the next few hours, we would probably see a movement back down to 111.00 during the Asian session or earlier in the New York session. This was a pretty good call, the level was pivotal, and it held, pushing the price down close to 111.00 as I had expected, before finally breaking.
We now have a generally weakly bullish but congested picture in this pair. There is no long-term trend, but there is a medium-term bullish trend supported by the bullish trend line shown in the price chart below. The difficulty for bulls is that the bullish movements do not last for long, and there is an inability to rise above the resistant area which begins at 111.86.
The best that can be said is that it makes sense to be very cautiously bullish, and that if the price can go on to break above 112.15 with good momentum, then that would be a bullish sign that we would be likely to finally see some strong movement here.
There is nothing important due today concerning either the JPY or the USD.