Yesterday’s signals were not triggered, as the price never reached either of the key levels.
Today’s USD/JPY Signals
Risk 0.75%.
Trades may only be entered from 8am New York time until 5pm Tokyo time, during the next 24-hour period.
Short Trade 1
Go short following a bearish price action reversal on the H1 time frame immediately upon the next touch of the trend line shown in the chart below, which is currently sitting at about 114.38.
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 run.
Long Trades
Go long following a bullish price action reversal on the H1 time frame immediately upon the next touch of 113.75 or 113.40.
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 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
This pair continues to look interesting. There is a long-term bullish trend, but it will fail unless the price manages to get higher over the coming week or so. There is buying, with new higher small zones of support being printed, so there is no reason to turn bullish yet. However, as we get to the area at and above 114.20, the price keeps topping out and falling back.
It seems probable that this pair will continue this ranging pattern within a longer-term bullish context until we get the real Non-Farm Payrolls number tomorrow.
I maintain a bullish bias.
There is nothing due today concerning the JPY. Regarding the USD, there will be a release of Unemployment Claims data at 12:30pm London time.