Yesterday’s signals were not triggered, as none of the key levels were reached within the specified time.
Today’s USD/JPY Signals
Risk 0.75%.
Trades may only be taken from 8am New York time Tuesday until 5pm Tokyo time Wednesday.
Short Trades
Go short following a bearish price action reversal on the H1 time frame immediately upon the next touch of 110.65 or 110.88.
Put 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 110.27 or 109.59.
Put 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 price still looked bearish over the medium-term, but bullish over the short-term. The key question looked to be whether the 110.27/30 area was going to hold – that was likely to be the day’s key pivotal point.
This was a good call as once the price did break 110.27 it continued but this has only just happened. Really, the movements are small, and volatility is very low. Much will probably now depend upon the U.S. economic data due later: if the number is strong, it will probably push the price up to reach at least the next resistance level.
Overall this pair is challenging to trade due to its lack of any real trend and low volatility
There is nothing of high importance due today concerning the JPY. Regarding the USD, there will be a release of CB Consumer Confidence data at 2pm London time today.