Yesterday’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 taken from 8am New York time until 5pm Tokyo time, over the next 24-hour period only.
Short Trade
- Go short following a bearish price action reversal on the 1H1 time frame H1H1H1 time frame immediately upon the next touch of 112.83.
- 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 Trade
- Go long following a bullish price action reversal on the 1H1 time frame H1H1H1 time frame immediately upon the next touch of 111.94 or 111.66.
- 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 the picture had become more bullish since my last forecast on Thursday, with the price continuing to move up to challenge the nearest resistance level at 112.84. There is low volatility in this pair, so a failure here at 112.84 would not surprise me, but a bullish break is also quite possible, which is why I am ignoring this level now. I was wrong not to see that 112.84 remained pivotal, as we did have that failure, but it has led to a strong fall as Asian stock markets turned very bearish and stocks globally fall, sending money into havens such as the Japanese Yen. As long as stock markets remain fearful, the Yen should tend to strengthen, so this pair effectively becomes a proxy for major stock markets. There is still relatively low long-term volatility and the absence of any good trend, so trading this pair remains unpredictable. If markets remain fearful after the New York open, the price could easily fall to 111.94 or possibly even lower.
There is nothing important due today concerning either the JPY or the USD.