Yesterday’s signals were not triggered as there was no bearish price action at 112.50.
Today’s USD/JPY Signals
Risk 0.75%.
Trades must be entered between 8am New York time and 5pm Tokyo time, during the next 24-hour period only.
Long Trade 1
Go long following a bullish price action reversal on the H1 time frame occurring upon the next touch of 111.36.
Place 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.
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.
Short Trade 1
Go short following a bearish price action reversal on the H1 time frame immediately upon the next touch of 112.91.
Place 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.
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
The short-term bullish trend broke yesterday, as evidenced by the broken bearish trend line which can be seen in the chart below. However, the action is still bearish over the medium term, while there is no long-term trend.
This pair is likely to do little today until President Trump speaks before Congress. As this is going to take place during the forthcoming Asian session, the anticipated volatile movement in the USD is likely to be expressed the most here.
The resistance close to 113.00 looks clear and strong as a “flipped” level/zone.
There is nothing due today concerning the JPY. Regarding the USD, there will be a release of Preliminary GDP data at 1:30pm London time, followed by CB Consumer Confidence at 3pm. President Trump will be speaking before a joint session of Congress at 2am.