Yesterday’s signals were not triggered as there was no bullish price action at 108.89.
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 Trade 1
- Go short following a bearish price action reversal on the H1 time frame immediately upon the next touch of 109.49.
- 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 Trade 1
- Go long following a bullish price action reversal on the H1 time frame immediately upon the next touch of the lower trend line shown in the chart below which is currently sitting at about 108.18.
- 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
This pair remains at the heart of the Forex market, showing the highest consistent volatility. Although it is technically in a long-term bearish trend and a weak and wide bearish channel, with the Yen benefiting from risk-on, pro-safe haven market sentiment, it remains tricky to trade due to the fact that it keeps bouncing back from areas below 109.00, which have acted as long-term support for many weeks now. Probably the easiest way to trade it is to maintain a short bias but without holding on too long before taking profits, and using turns following deeper pull-backs for entries, paying attention to major trend lines as well as key horizontal prices.
There is nothing due today concerning the JPY. Regarding the USD, there will be a release of ISM Non-Manufacturing PMI data at 3pm London time.