Yesterday’s signals were not triggered, as there was no bearish price action when the price reached 110.95.
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 hours.
Short Trade
Go short following a bearish price action reversal on the H1 time frame immediately upon the next touch of 112.40.
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 110.95 or 109.85.
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 price reaches 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 yesterday that a break above 110.95 would make the picture much more bullish over the short term. This is what happened, following the bullish break of the trend line which had occurred previously.
At the time of writing, the price action suggests that a long from the confluence of a round number and flipped resistance to support at about 111.00 would be the most probable and healthy reward to risk opportunity that would arise today.
There is no long-term trend, the higher time frame charts clearly show ranging conditions are prevalent in this currency pair.
There is nothing important due today concerning either the JPY or the USD.