Yesterday’s signals could have produced both long and short trades as the price was held by both 113.07 and 113.56, but neither of the signals were technically good enough for trade entries.
Today’s USD/JPY Signals
Risk 0.75%.
Trades may be entered before 5pm Tokyo time, during the next 24-hour period only.
Short Trades
Short entry following a bearish price action reversal on the H1 time frame immediately upon the next touch of 113.56 or 114.18.
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 Trades
Long entry following a bullish price action reversal on the H1 time frame immediately upon the next touch of 113.07, 112.57, or 112.19.
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 yesterday that if the price rallied and closed above 113.20 it would be a bullish sign. I would take a bullish bias at a bounce at 113.07 which might happen later, if the bounce were strong.
We did get both of these, but the bounce at 113.07 went too far, about 80 pips from entry, so this was no good for a long trade. The close for the day was bullish and we did see the price rise by about 40 pips from there, but it has now fallen back by the same amount to rest on the support level at 113.07.
So, we have both support and resistance intact, and inconclusive bullishness which is producing just as much pips long as short so far. It is an indecisive and less bullish picture. However, the short-term odds seem to remain slightly with the bulls. If the support at 113.07 holds as we get into the New York session, I would take a bullish bias.
There is nothing important due today concerning either the JPY or the USD.