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 until 5pm Tokyo time, over the next 24-hour period only.
Short Trade
Short entry following a bearish price action reversal on the H1 time frame immediately upon the next touch of 109.13.
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
Long entry following a bullish price action reversal on the H1 time frame immediately upon the next touch of 108.05 or 107.50.
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 wrote yesterday that I had no directional bias, seeing both nearby levels as equally good potential opportunities for fade trades. I also said that the strong movement we had already seen in the Yen’s advancement was the kind of movement that tends to be short-lived, so we may already have seen the strongest part of today’s movement. This was an accurate call, as the levels held the remainder of the day’s range. This means that the technical picture is unchanged, and I again have no directional bias. I would look to fade any key levels after a clear reversal already becomes apparent, but I doubt there will be much price movement in this currency pair as both the Yen and Dollar are moving together to a strong extent.
There is nothing due today concerning the JPY. Regarding the USD, there will be a release of ADP Non-Farm Employment Change data at 1:15pm London time.