Last Thursday'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 to 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 110.79.
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.
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
Long entry following a bullish price action reversal on the H1 time frame immediately upon the next touch of 110.00 or the bullish trend line shown in the price chart below which currently sits at about 110.11.
Put the stop loss 1 pip below the local swing low.
Move 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 last Thursday that if the price could remain above 110.62 for some hours, the picture would look more bullish. The price did stay a few pips above that level, but it never truly looked as it was going to take off, and we now have a jittery medium-term downwards move, which is small but has also established new lower resistance at 110.55. The price now looks heavy, and there is nothing to hold it up, although volatility is very low. I have a bearish bias below 110.55 but I would feel more enthusiastic about a short trade from a reversal at 110.79 than at 110.55. The confluence of the broken trend line and the psychological level of 110.00 could produce a nice long trade if the price reaches there and then reverses later
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There is nothing important due today concerning either the JPY or the USD.