Yesterday's signals were not triggered as there was no bullish price action at 110.79.
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 Trades
Go short following a bearish price action reversal on the H1 time frame immediately upon the next touch of 111.00 or 111.75.
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.
Remove 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 following a bullish price action reversal on the H1 time frame immediately upon the next touch of 110.55 or 110.00.
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.
Remove 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 and that the market was likely to be extremely quiet until Friday. The market has been relatively quiet, but the direction has clearly been bearish, so I missed out on the chance of a little profit. The action still looks bearish, but the trend is quite thin and weak. Such trends are often vulnerable to dramatic pull backs which can wipe out paper profits in a minute or less. However, it certainly looks likely that the price will continue downwards to reach 110.55 today and possible even the big round number at 110.00, so I take a weak bearish bias.
There is nothing important due today concerning the JPY. Regarding the USD, there will be a release of Crude Oil Inventories data at 3:30pm London time.