Yesterday’s signals were not triggered, as none of the key levels were ever reached.
Today’s USD/JPY Signals
Risk 0.75%.
Trades may only be entered between 8am New York time and 5pm Tokyo time today.
Short Trades
Short entry following a bearish price action reversal on the H1 time frame immediately upon the next touch of 109.50 or 110.04.
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.
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
Long entry following a bullish price action reversal on the H1 time frame immediately upon the next touch of 108.55.
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.
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 now was slightly more bullish as the price had broken above the former resistance at 108.70. I thought that the levels at 109.50 and 110.04 were going to provide stronger resistance. This was a good call and I was correct in seeing a continuing rise toward but not exceeding 109.50.
We can see there is new higher support at 108.55 which is another bullish sign. However, it looks rather weak.
There is little momentum, and I think that the price will now do little until the FOMC Meeting Minutes later. Any new insight that gives into potential rate hikes over 2019 will be likely to give the price a directional push. I think the price is likely to remain below 109.50 until the FOMC release, but I cannot make any forecast beyond that.
There is nothing of high importance due today concerning the JPY. Regarding the USD, there will be a release of the FOMC Meeting Minutes at 7pm London time.