Last Thursday’s signals were not triggered, as the resistance level at 110.89 was not reached that day.
Today’s USD/JPY Signals
Risk 0.75%.
Trades must be entered before 5pm Tokyo time Tuesday only.
Short Trades
Short entry following a bearish price action reversal on the H1 time frame immediately upon the next touch of 110.89 or 111.46.
Place 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 110.40 or 110.27.
Place 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 the bullish price channel seemed to have broken down, so a bearish move might be ahead. I noted that the price was congested and there was no obvious sign it would move in either direction. This was a good call as the price has continued to range, with all levels holding over several days. The scope for serious movement is to the upside above 110.89, but there is no sign of that happening. I expect that both support and resistance levels will continue to hold on low volatility today.
There is nothing of high importance due today concerning either the JPY or the USD.