Last Thursday’s signals were not triggered, as none of the key levels were reached that day.
Today’s USD/JPY Signals
Risk 0.75%.
Trades must be entered between 8am New York time and 5pm Tokyo time, over the next 24-hour period only.
Short Trades
Short entry following a bearish price action reversal on the H1 time frame immediately upon the next touch of 110.40, 110.58, or 110.86.
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
Long entry following a bullish price action reversal on the H1 time frame immediately upon the next touch of 109.85 or 109.60.
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 last Thursday that although the action was bullish, the bullishness was very weak and needed to follow through soon or the price would start to decline again. This is what happened. However, the Yen has weakened, and the price is now rising and is struggling to get above the 110.00 level again. It looks like there is long-term potential to the upside, in line with the long-term bullish trend, but it still does not look as if it will happen just yet. The price will still need to break above the cluster of resistance levels starting at 110.40. I see the price above 111.00 as a bullish sign that could start a much bigger move, when it finally does happen. Meanwhile, I have little faith in the nearest resistance 109.85 and I am not confident about forecasting the likely dominant price direction today.
There is nothing due today concerning either the JPY or the USD.