USD/JPY: Little price movement
Yesterday’s signals were not triggered as there was insufficiently bearish price action at 108.69.
Today’s USD/JPY Signals
Risk 0.75%.
Trades must be entered from 8am New York time Tuesday until 5pm Tokyo time Wednesday.
Short Trade Ideas
Short entry following a bearish price action reversal on the H1 time frame immediately upon the next touch of 108.59, 109.19, or 109.59.
Put 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.
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 Idea
Long entry following a bullish price action reversal on the H1 time frame immediately upon the next touch of 107.02.
Put 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.
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 this pair had moved relatively little compared to other currency pairs, and this looked likely to continue. I was correct about that, although I was wrong to see a downwards move as more likely over the short term.
The price invalided one resistance level, but the higher level at 108.59 has held.
I do not see any great trading opportunities as likely to set up here, even though today is the last day of the month at the end of an extremely volatile month. I would stand aside and wait to see what happens for the time being unless there is an exceptionally attractive bearish price action rejection of 108.59 at about the time markets in New York open.
There is nothing of high importance scheduled for today concerning the JPY. Regarding the USD, there will be a release of CB Consumer Confidence data at 3pm London time.