Yesterday’s signals were not triggered, as there was no bearish price action at any of the three resistance levels when they were reached.
Today’s USD/JPY Signals
Risk 0.75%.
Trades must be taken between 8am New York time and 5pm Tokyo time, during the next 24-hour period only.
Short Trade
Go short following a bearish price action reversal on the H1 time frame immediately upon the next touch of 108.05.
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.
Remove 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
Go long following a bullish price action reversal on the H1 time frame immediately upon the next touch of 106.24, 106.10, 105.90.
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.
Remove 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 I had no directional bias, and that if the price made a sustained break above 105.90, or the bearish trend line shown in the price chart below which is currently confluent with the resistance level at 106.10, that would be a sign that a more bullish picture was taking shape. This is what happened, with a strong flow into the USD which was felt very keenly in this pair, as the price broke up above these levels and the associated trend lines, although there is one long-term bearish trend line remaining close to 107.00. There is a long-term bearish trend, but it now looks as if there will either be a very deep bullish pull-back or possibly even a trend reversal, though it too early to be clear about a reversal. Technically, the chart suggests there will be more upwards movement today, with new support not far below the current price. The picture is more bullish, and if the price can get established above 107.00, that would be more bullish still and suggest a further move up to at least 108.00.
There is nothing due today concerning either the JPY or the USD.