Yesterday's signals were not triggered as none of the key levels were reached during the specified time.
Today's USD/JPY Signals
Risk 0.75%.
Trades may only be entered before 5pm Tokyo time Wednesday.
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 Trade
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Go long following a bullish price action reversal on the H1 time frame immediately upon the next touch of 110.40 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 the price was bunching just underneath the flipped support to resistance at 110.58 which looked weak. The price was eventually able to rise above that level and in recent hours also appears to have broken above the former resistance level at 110.76. These are all weakly bullish signs and it may be that we get a strong move in this pair when the U.S. returns from holiday later today. The line of resistance certainly appears to be bullish, so I would watch out for an upwards movement with some resistance possible at 111.10 and then again at 111.46. I would take a bullish bias if the price can spend a couple of hours making new highs in the early part of the New York session.
There is nothing of high importance due today regarding either the JPY or the USD.
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