Yesterday’s signals were not triggered, as none of the key levels were hit during the specified time.
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 Trade
Go short following a bearish price action reversal on the H1 time frame immediately upon the next touch of 114.18 or 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 Trades
Go long following a bullish price action reversal on the H1 time frame immediately upon the next touch of 113.56 or 113.05.
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 although I was still long-term bullish, I am not confident regarding the likelihood of today’s direction. This was a good call as the price has remaining within its recent zone of support and resistance. It seems as if the Dollar bulls are getting back in control now, so we can expect the price will shortly test the nearby resistance at 114.18. This is likely to be the pivotal level for today. If the price can stay above that level for a couple of hours, it should be a bullish sign and I would take a bullish bias. Conversely, it might produce a bearish double top later.
There is nothing important due today concerning either the JPY or the USD.