Yesterday’s signals were not triggered, as there was no bullish price action at any of the support levels which were reached.
Today’s USD/JPY Signals
Risk 0.75%.
Trades may only be taken between 8am New York time and 5pm Tokyo time, during the next 24-hour period.
Short Trades
Go short following a bearish price action reversal on the H1 time frame immediately upon the next touch of 110.40, 110.58, or 110.86.
Place 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.
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 109.15.
Place 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.
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
I wrote yesterday that the price was most likely settle and consolidate over the coming hours, at least until the FOMC release due later. I was wrong, the price has continued to fall with momentum, invalidating a bullish trend line and two support levels. The Japanese Yen has been unusually strong over recent hours. There is a weak, long-term bullish trend which is in serious doubt now. It is difficult to predict what is going to happen here, especially as the short-term bearish momentum seems to have stopped or at least slowed down. This pair is a confusing picture and is probably best avoided by traders for the time being. I have no directional bias.
There is nothing due today concerning either the JPY or the USD.