Yesterday’s signals were not triggered, as none of the key levels were ever reached.
Today’s USD/JPY Signals
Risk 0.75%.
Trades may only be entered between 8am New York time and 5pm Tokyo time, during the next 24-hour period.
Short Trade
Go short following a bearish price action reversal on the H1 time frame immediately upon the next touch of 110.52.
Put 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 entry following a bullish price action reversal on the H1 time frame immediately upon the next touch of 109.52 or 109.00.
Put 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 trade is 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 continued to take a slightly bullish bias yesterday and that wasn’t so bad although it wasn’t great: the price changed little over the day after initially continuing to move up slightly and is now down just a little over the past 24 hours. There is no change to the technical picture, with the nearest support and resistance levels both holding, in fact neither of them has even been touched. The key thing to note here is that the market is much more focused on the GBP/USD and EUR/USD currency pairs than it is on this pair – the action is elsewhere, at least partly because Japan is on a multi-day holiday.
I maintain a mildly cautious bullish bias, but I expect that this pair will continue to do relatively little today.
There is nothing due today concerning the JPY: it is a public holiday in Japan. Regarding the USD, there will be a release of ISM Non-Manufacturing PMI data at 3pm London time.