Yesterday’s signals were not triggered, as none of the key levels were ever reached.
Today’s USD/JPY Signals
Risk 0.75%.
Trades may only be taken between 8am New York time Wednesday and 5pm Tokyo time Thursday.
Short Trade
Short entry following a bearish price action reversal on the H1 time frame immediately upon the next touch of 110.29.
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 Trades
Long entry following a bullish price action reversal on the H1 time frame immediately upon the next touch of 109.07 or 108.73.
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 the price had made up a lot of ground but will not test any resistance levels even if it rises further until it reaches 110.29.
The long-term bearish trend remained technically in force below 110.29, but the price did not look bearish on the shorter time frames yet.
I would take a bearish bias if the price retested 110.29 and failed to break above that level while printing some bearish price action.
This was a good call as it was enough to stay out of trouble – the price of this currency pair did not move by much over the past day. Currently, the action looks more bearish over the short term.
This currency pair will act as a barometer of risk sentiment, which will be driven primarily by any news or rumours concerning the U.S. / China trade dispute.
I will take a bearish bias later if the price can spend two hours below 109.07, or if there is a failure at a test of 110.29.
There is nothing important due today concerning the JPY. Regarding the USD, there will be a release of Retail Sales data at 1:30pm London time.