(MENAFN- Daily Forex) Yesterday's signals were not triggered, as there was no bearish price action at 113.23.
Today's USD/JPY Signals
Risk 0.75%.
Trades must be taken between 8am New York time and 5pm Tokyo time over the next 24-hour period.
Short Trade
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Short entry following a bearish price action reversal on the H1 time frame immediately upon the next touch of 113.37.
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Put the stop loss 1 pip above the local swing high.
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Move the stop loss to break even once the trade is 20 pips in profit.
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Take off 50% of the position as profit when the trade is 20 pips in profit and leave the remainder of the position to run.
Long Trades
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Long entry following a bullish price action reversal on the H1 time frame immediately upon the next touch of 112.93 or 112.19.
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Put the stop loss 1 pip below the local swing low.
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Move the stop loss to break even once the trade is 20 pips in profit.
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Take off 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 the bearish price channel was intact, and the price had even been held within a bearish inner trend line. I remained broadly bearish, with the market showing 'risk off sentiment which should help the Japanese Yen and was a confluence of a major trend line and a horizontal level now at 113.23 so I would be specifically bearish if we see a return to that level followed by a strong reversal.
I was wrong, as the inner trend line did not success in holding the price, nor did the resistance at 113.23 which has been invalidated. Although the price is moving in wide waves, more meaningful directional movement does not seem to be indicated, and there is a longer-term ranging environment in effect making it quite likely that the price will trade roughly between 113.37 and 112.19 in the near future. I have no directional bias, especially if the support at 112.93 (which looks weak) breaks down. 
There is nothing important due today concerning the JPY. Regarding the USD, there will be a release of PPI data at 1:30pm London time.
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