Yesterday’s signals were not triggered as there was insufficiently bearish price action at 109.60.
Today’s USD/JPY Signals
Risk 0.75%.
Trades must be taken between 8am New York time and 5pm Tokyo time, over the next 24-hour period only.
Short Trades
- Go short following a bearish price action reversal on the H1 time frame immediately upon the next touch of 109.80 or 110.24.
- 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
- Go long following a bullish price action reversal on the H1 time frame immediately upon the next touch of 109.17 or 108.69.
- 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
The resistance level at 109.60 did not hold, but an equally convincing level can be drawn at 109.80 following the bearish reversal which occurred there a few hours ago. This pair is at the heart of the market, with good volatility, and although there is a long-term downwards trend, we seem to have a double bottom at 108.69 which could now hold the price up. We also have new support at 109.14, and it seems likely that the price will now consolidate between 109.14 and 109.80 today.
There is nothing due today concerning the JPY. Regarding the USD, there will be a release of Crude Oil Inventories data at 3:30pm London time.