Today’s USD/JPY Signals
Risk 0.75%.
Trades may only be entered from 8am New York time until 5pm Tokyo time, during the next 24-hour period.
Short Trades
- Go short following a bearish price action reversal on the 1H1 time frame H1H1H1 time frame immediately upon the next touch of 112.65 or 113.40.
- 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 1H1 time frame H1H1H1 time frame immediately upon the next touch of 111.70.
- 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
The return to risk appetite, despite Trump's threat to impose USD 200 billion tariffs on Chinese products, had support this pair which corrected to the 112.45 level, the highest in two months. As I mentioned before, and I confirm now, the general trend will continue to be bullish as long as the pair doesn’t break above the psychological resistance level at 110.00. The central bank of Japan kept its monetary policy unchanged at a negative interest rate of -0.10% and kept the stimulus programs until inflation in the country reaches the bank's goal, which is still far from being achieved.
There is nothing important due today concerning the JPY. Regarding the USD, here will be the release of the Building Permits data.