Yesterday’s signals were not triggered, as none of the key levels were ever reached.
Today’s USD/JPY Signals
Risk 0.75%.
Trades must be entered from 8am New York time to 5pm Tokyo time, over the next 24-hour period only.
Short Trade
Go short following a bearish price action reversal on the H1 time frame immediately upon the next touch of 107.20.
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.
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 106.03 or 105.51.
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.
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 the bearish trend line still dominates the chart, as shown in the price chart below, although there is key support below confluent with a round number at 106.00. I maintain a bearish bias and there is no reason not to see still lower prices ahead. Although the prices failed to make a meaningful new low yesterday and rose again to the area close to the resistance level identified at 107.20, it still looks as if this pair is going to fall. There has been no significant change to the technical picture and the chart below shown that 107.20 is now precisely confluent with the dominant bearish trend line. I maintain a bearish bias.
There is nothing due today concerning the JPY. Regarding the USD, there will be a release of Core Durable Goods Orders and testimony before Congress by the Chair of the Federal Reserve at 1:30pm London time, followed by CB Consumer Confidence data at 3pm.