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 113.13.
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 run.
Long Trades
Go long following a bullish price action reversal on the H1 time frame immediately upon the next touch of 112.06 or 111.75.
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 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 psychological level at 112.50 may make its presence felt and prevent much further short-term upwards movement, at least until the New York open later. I had a bullish bias above 112.00. I was very slightly wrong on the bias, but the price has not fallen by much. I was right about 112.50 being felt as a resistant area, as it has held the price down successfully over the past 24 hours. The key event for this pair today is likely to be the Chair of the Federal Reserve’s testimony later. If it is more hawkish than expected, I would expect this pair to rise strongly, in line with the long-term bullish trend. The consolidation we see here has more to do with the Dollar than the Yen. I have a slightly bullish bias, but all will most likely depend upon the testimony.
There is nothing important due today concerning the JPY. Regarding the USD, the Chair of the Federal Reserve will be testifying on the Semi-annual Monetary Policy Report before Congress at 3pm London time.