Yesterday’s signals were not triggered, as none of the key levels were ever reached.
Today’s USD/JPY Signals
Risk 0.75%.
Trades must be entered between 8am New York time and 5pm Tokyo time, over the next 24-hour period only.
Short Trade
Short entry following a bearish price action reversal on the 1H1 time frame H1H1H1 time frame immediately upon the next touch of 114.18.
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 113.13.
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 the price was 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. I also noted that there was a long-term bullish trend in force. This was a pretty good analysis as the area around 113.60 did hold and has the price has risen again a little from there. The strong action has been in the European currency pairs, away from this currency pair. However, the bullish trend is still there even if action is relatively quiet. It is hard to say what will happen next as the price has quite a long way to fall before the bullish trend could be called into question, so I’d still be quietly bullish here, but a short-term downwards movement would not be a surprise now.
Regarding the USD, there will be a release of the ADP Non-Farm Employment Change data at 1:15pm London time, followed by ISM Non-Manufacturing PMI at 3pm. The Chair of the Federal Reserve will be giving a minor speech at 9pm. There is nothing due today concerning the JPY.