Yesterday’s signals were not triggered, as none of the key levels were ever reached.
Today’s USD/JPY Signals
Risk 0.75%.
Trades may only be entered between 8am New York time and 5pm Tokyo time today.
Short Trades
Short entry following a bearish price action reversal on the H1 time frame immediately upon the next touch of 109.08 or 109.50.
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
Long entry following a bullish price action reversal on the H1 time frame immediately upon the next touch of 106.02.
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 it seemed to make sense to take a weakly bullish bias, provided that the support level at 108.55 held as the New York session gets underway and the price continued to make new highs with healthy volatility. This was enough to keep anyone out of trouble as the price was trading below that level by the time New York opened.
The action has been choppy and indecisive, erasing the key level at 108.55. There is now a wide-open space between roughly 106.00 and 109.00, with the price continuing its quiet range-bound trading just below the 109.00 area.
The most useful thing that can be said technically beyond that is that there may be minor support just below 108.40.
I take no bias on this pair and see better opportunities likely to arise in other currency pairs.
There is nothing of high importance due today concerning the USD. Regarding the JPY, Governor of the Bank of Japan will be speaking at the G20 Symposium at 3:20am London time.