Last Thursday’s signals were not triggered, as there was no bearish price action at 114.74.
Today’s USD/JPY Signals
Risk 0.75%.
Trades must be entered between 8am and 5pm Tokyo time, over the next 24-hour period only.
Short Trade
Short entry following a bearish price action reversal on the H1 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 last Thursday that there was no reason yet to be anything other than bullish, and as the price was trading in bullish blue sky, we could expect the price to end the month at about 116.00 so it is likely to advance further over the coming weeks. I remained bullish provided 114.18 held up as support. This was a good call for a pivotal point as the price has been moving down in waves ever since that support at 114.18 broke down last Thursday, and at the time of writing the price is finally breaking strongly below the long-term bullish trend line. There is strong bearish momentum and we are quite likely to see 113.13 soon. What happens at that level is likely to be crucial during the Asian session later, but it is quite likely that we have already seen the major move of the day as the U.S.A. is offline today.
There is nothing important due today concerning either the JPY or the USD. It is a public holiday in the U.S.A. today.