USD/JPY Forex Signal
|Yesterday’s signals were not triggered, as there was no bullish price action at either 110.60 or 110.78.
Today’s USD/JPY Signals
Risk 0.75%.
Trades may only be entered before 5pm Tokyo time Friday.
Short Trade
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Go short following a bearish price action reversal on the H1 time frame immediately upon the next touch of 111.46.
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Put 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 Trades
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Go long following a bullish price action reversal on the H1 time frame immediately upon the next touch of 110.60 or 110.27.
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Put 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 short-term bearish trend, but it did not look very reliable.
It was hard to have any directional bias and I thought this pair was probably best avoided over the coming day or so until the technical situation clarifies. This was a good call as the price has continued to range unpredictable over the past 24 hours.
The best that can be said, as the range continues, is that scalping off the support at 110.60 might be the best approach today. Until the price breaks above 111.46, it is difficult to be truly bullish on this pair, especially as the U.S. stock market seems to be continuing its decline. I have no directional bias today.
There is nothing of high importance due today concerning the JPY. Regarding the USD, there will be a release of Advance GDP data at 1:30pm London time.
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