Last Thursday’s signals were not triggered, as there was no bearish price action at 113.13.
Today’s USD/JPY Signals
Risk 0.75%.
Trades may only be taken 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 114.18.
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 Trade
Go long following a bullish price action reversal on the H1 time frame immediately upon the next touch of 113.13.
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 last Thursday that directional movement had become more uncertain, so I had neither a bullish nor a bearish bias. The price actually rose strongly in line with its increasingly long-term bullish price channel, eventually breaking above the upper limit of that channel before failing around the round number of 114.00. The price is now in a reasonably deep bearish retracement and may begin to find support already as it reaches a former price ceiling at about 113.60. The next key level below that is 113.13 which looks very solid as it is a clear flipped level which is also confluent with the supportive lower trend line of the former bullish price channel. The short-term price direction is again seen as uncertain but there is a long-term bullish trend in force, no doubt.
Regarding the USD, the Chair of the Federal Reserve will be giving a minor speech at 3pm London time. There is nothing important due today concerning the JPY.