Last Thursday’s signals were not triggered, as there was no suitable price action at either of the key levels which were reached.
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 Trade
Short entry following a bearish price action reversal on the H1 time frame immediately upon the next touch of 113.05 or 113.66.
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.
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 Trade
Long entry following a bullish price action reversal on the H1 time frame immediately upon the next touch of 112.57.
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.
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 last Thursday that I had no directional bias now and would be prepared to see any strong reversal from any key level as a good potential entry.
The price has fallen, calling the very weak but real long-term bullish trend into question. We see low volatility and mostly ranging conditions prevailing here in this currency pair for a long time now.
We have a medium-term downward trend, but it is also true that the nearby support is confluent with the psychologically important level at 112.50, so a bullish bounce here could be an interesting long trade opportunity.
There is nothing important due today concerning the USD. Regarding the JPY, the Governor of the Bank of Japan will be giving a minor speech at 3:30am London time.