Yesterday’s signals triggered a nice long trade as the price turned within the support zone identified between 113.81 and 113.53. The price is still rising at the time of writing, but it would be wise to take partial profits once there is an hour or two where the price does not rise any meaningful further distance.
Today’s USD/JPY Signals
Risk 0.75%.
Trades may only be entered between 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 114.50.
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 entry into the zone between 113.71 and 113.53.
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, and the price is also clearly contained within a medium-term bullish symmetrical channel, which is shown in the chart below. While the price is finding it very difficult to break up above the very long-term resistance at about 114.50, there is strong buying below 113.75 or so. Taken together, these facts indicate that the price is at a pivotal area which has a positive probability to provide a low risk, high reward winning trade either long or short. The more likely outcome is still on the long side and I maintain a bullish bias.
There is nothing important due today concerning either the JPY or the USD.