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 before 5pm Tokyo time Thursday.
Short Trades
Short entry following a bearish price action reversal on the H1 time frame immediately upon the next touch of 111.46.
Place 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 110.40 or 110.27.
Place 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 there were a few weakly bullish signs, so I would watch out for an upwards movement with some resistance possible at 111.10 and then again at 111.46. I was ready take a bullish bias if the price could spend a couple of hours making new highs in the early part of the New York session. In fact, the price fell at this time, although it did rise to make new highs during the Asian session, although not by much.
The price is moving within a bullish channel, although it looks relatively unreliable as it is not symmetrical. The price is also being held by a resistance level at 110.89. I think the price is most likely to range until the FOMC release due later, at which point it is more likely to breakout. Above 111.00, there is room to rise to 111.46, so I think that a strong bullish move is a little more likely than a strongly bearish move. Even if the FOMC release says nothing surprising, it may at least release pent-up liquidity into the market and cause the move that was “waiting to happen”, so if the price rises to above 111.00 after the FOMC I would take a bullish bias.
There is nothing of high importance due today regarding the JPY. Concerning the USD, there will be a release of FOMC Meeting Minutes at 7pm London time.