Yesterday’s signals were not triggered, as the bullish price action took place a few pips below the support level identified at 109.23.
Today’s USD/JPY Signals
Risk 0.75%.
Trades may only be taken between 8am New York time Wednesday and 5pm Tokyo time Thursday.
Short Trade Ideas
- Go short following a bearish price action reversal on the H1 time frame immediately upon the next touch of 109.23 or 109.59 or 110.08.
- 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 Ideas
- Go long following a bullish price action reversal on the H1 time frame immediately upon the next touch of 108.61 or 108.21 or 107.80.
- 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 I wanted to stand aside from trading this pair as both of the currencies in this pair are behaving with similar strength or weakness, and trading crosses or pairs of either with commodity currencies was likely to be more interesting. This was a good call as the price has moved little here.
I expect that the price of this currency pair will continue to consolidate between 108.61 and 109.23 over the next 24 hours, so I would be prepared to trade reversals from either level with no overall long or short bias. We may see prices move more on Thursday and Friday when we will get some key U.S. economic data releases.
There is nothing of high importance scheduled for today concerning either the JPY or the USD.