Yesterday’s signals were not triggered, as there was no bearish price action at 114.18.
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 114.74.
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 114.18.
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 yesterday that the bullish trend was still there even if action is relatively quiet. I said I’d still be quietly bullish here, but a short-term downwards movement would not be a surprise now. This was a good call as the price has risen quite strongly, breaking the former resistance at 114.18 which now looks like being new stairstep support. The price chart below shows a solid, exponential, increasingly steepening long-term bullish trend. There is no reason yet to be anything other than bullish, and as the price is now trading in bullish blue sky, we can expect the price to end the month at about 116.00 so it is likely to advance further over the coming weeks. We may now see a consolidation for a while ahead of tomorrow’s important non-farm payrolls U.S. data. I remain bullish provided 114.18 holds up as support.
There is nothing important due today concerning either the JPY or the USD.