USD/JPY Forex Signal
|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 between 8am New York time and 5pm Tokyo time, during the next 24-hour period only.
Short Trades
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Go short following a bearish price action reversal on the H1 time frame immediately upon the next touch of 111.75 or 112.06.
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Place the stop loss 1 pip above the local swing high.
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Adjust the stop loss to break even once the trade is 20 pips in profit.
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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
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Go long following a bullish price action reversal on the H1 time frame immediately upon the next touch of 110.55.
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Place the stop loss 1 pip below the local swing low.
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Adjust the stop loss to break even once the trade is 20 pips in profit.
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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 there was a small chance of a bullish break above the top of the bearish wedge shown in the price chart below, but I thought it would not run far. I was right as the Bank of Japan’s statement at the end of the trading period was required to make the price really move, and by then it was too late, although in the end we did get our bullish break. The price has still not reached any key levels and that might not happen at all today, although the broken trend line has already been used as support and this could happen again if the price now pulls all the way back to 111.10 or thereabouts.
There is short-term bullishness, but it is not clear that it is going to last. I have no directional bias today.
There is nothing important due today concerning the JPY. Regarding the USD, there will be a release of CB Consumer Confidence data at 3pm London time.
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