Last Thursday’s signals were not triggered as unfortunately the price never quite reached the support level identified at 109.82.
Today’s USD/JPY Signals
Risk 0.75%.
Trades may only be taken between 8am New York time and 5pm Tokyo time, over the next 24-hour period.
Short Trades
- Short entry following a bearish price action reversal on the 1H1 time frame H1H1H1 time frame immediately upon the next touch of 110.94, 111.29 or 111.72.
- 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.
- 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.
Long Trades
- Long entry following a bearish price action reversal on the 1H1 time frame H1H1H1 time frame immediately upon the next touch of 110.35 or 109.82.
- 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.
- 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
I wrote at the end of last week that this pair is really ranging without a definite trend, and so it has not been a surprise to see the price break up past the top of the bearish channel which had been containing it. The chart below shows that the price movements are behaving quite predictably in a technical sense, with key support and resistance levels all holding. Over the short term, the price seems set to test the resistance level at 110.94. If it breaks, we are likely to then see a further rise. I see this pair as most likely to rise gently over the coming days as sentiment is a little stronger on the USD, and there is no major U.S. data scheduled to change that until the later part of this week.
There is nothing due today concerning either the JPY or the USD.