Yesterday’s signals were not triggered as there was no bullish price action at either 114.08 or 113.41.
Today’s USD/JPY Signals
Risk 0.75%.
Trades must be entered from 8am New York time to 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 entry into the zone between 112.91 and 112.78.
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 ride.
Short Trade 1
Go short following a bearish price action reversal on the H1 time frame immediately upon the next touch of 115.45.
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 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
There was a strong drop yesterday as the U.S. Dollar took a hit from the FOMC’s dovish inflation stance, with the price bouncing almost to the pip at the support level of 112.91 that I have been highlighting on my charts for a while. If the price can break up above 113.55 bulls will find that very encouraging, but it seems less likely than another fall to 112.91 over the short/medium terms.
There is no long-term trend.
There is nothing due today regarding the JPY. Concerning the USD, there will be releases of Building Permits, Philly Fed Manufacturing Index, and Unemployment Claims data at 12:30pm London time.