Yesterday’s signals were not triggered, as the bearish price action took place just above the resistance level identified at 110.65.
Today’s USD/JPY Signals
Risk 0.75%.
Trades must be entered between 8am New York time Wednesday and 5pm Tokyo time Thursday.
Short Trades
Short entry following a bearish price action reversal on the H1 time frame immediately upon the next touch of 110.69 or 110.88.
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 Trades
Long entry following a bullish price action reversal on the H1 time frame immediately upon the next touch of 110.27 or 109.59.
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 yesterday that much would probably now depend upon the U.S. economic data due later: if the number was strong, it would probably push the price up to reach at least the next resistance level.
Overall this pair was challenging to trade due to its lack of any real trend and low volatility.
In fact, the next resistance level was reached even before the data release, which was poorer than expected for the USD. The resistance has now been pushed up to 110.69 and has held with stocks falling and the Yen advancing a little over the past few hours.
This pair has no trend and remains difficult to trade. I have no directional bias and think this pair might be best avoided today.
There is nothing of high importance due today concerning either the JPY or the USD.