Yesterday’s signals were not triggered, as none of the key levels identified were reached within the specified time.
Today’s USD/JPY Signals
Risk 0.75%.
Trades may only be entered from 8 am New York time Wednesday until 5 pm Tokyo time Thursday.
Short Trade Ideas
- Go short following a bearish price action reversal on the H1 time frame immediately upon the next touch of 106.07, 106.50, 107.07.
- Put 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 Ideas
- Go long following a bullish price action reversal on the H1 time frame immediately upon the next touch of 105.81, 105.40, 105.26, or 104.87.
- Put 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 I saw the area at 105.81 as extremely pivotal.
I was ready to take a long trade if we had gotten two consecutive hourly closes above 106.00 after New York opened.
I thought we would be quite likely to see lower prices over the day.
This was a good call as the price did turn bearish initially before recovering some hours ago.
Then during today’s London session, the price has finally made a technically crucial long-term bullish breakout above the pivotal point at 105.81 which was confluent with a long-term resistant trend line.
This bullish breakout above 105.81 is a bullish sign. If the price can get established above 106.07 it will be likely to continue upwards to 106.50 at least.
We could see even stronger movement later after the FOMC Meeting Minutes are released towards the second half of today’s New York session. However, this could also produce a sudden and sharp reversal.
There is nothing of high importance scheduled today concerning the JPY. Regarding the USD, there will be a release of FOMC meeting minutes at 7 pm London time.