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 from 8am New York time until 5pm Tokyo time, over the next 24-hour period.
Short Trades
- Short entry following a bearish price action reversal on the H1 time frame immediately upon the next touch of 111.49 or 111.67.
- 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 run.
Long Trade 1
- Long entry following a bearish price action reversal on the H1 time frame immediately upon the next touch of 110.00.
- 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 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 the line of least resistance looks to be downwards, as the price rejects the flipped support to resistance area starting at about 111.50, and the action of the past 24 hours supports this scenario. However, we see again and again that there is quite strong buying between 111.00 and 110.00. This makes the pair difficult to trade as there is a lot of chop, although the swings are clear – profits are best booked quickly once a strong downwards movement begins to stall. The pair must be said to be in a long-term downwards trend, but it looks as if it going to have great difficulty in getting below 110.00..jpg "USDJPY")
There is nothing due today concerning the JPY. Regarding the USD, there will be a release of CB Consumer Confidence data at 3pm London time