Yesterday’s signals were not triggered, as none of the key levels were reached.
Today’s USD/JPY Signals
Risk 0.75%.
Trades may only be taken between 8am New York time Thursday and 5pm Tokyo time Friday.
Short Trades
Go short following a bearish price action reversal on the H1 time frame immediately upon the next touch of 111.63 or 112.10.
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 Trades
Go long following a bullish price action reversal on the H1 time frame immediately upon the next touch of 111.21, 110.88, or 110.54.
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 picture was mildly bullish, as the price had been establishing higher and higher support levels and was moving within a very wide symmetrical bullish price channel.
I was not confident that there would be much movement over the day, but I felt more comfortable taking a long trade than a short one. This was a good call as the price held up but really went nowhere, just consolidating within a narrow range over the day. This means the technical picture has not change, so I am still mildly bullish, looking for a bullish sign at a break above 111.63 or a very bullish sign from a break above 112.10. A strong bounce at 111.21 would also make me take a more bullish bias.There is nothing of high importance due today concerning either the JPY or the USD.