(MENAFN- Daily Forex) Yesterday's signals were not triggered, as there was bearish price action when 113.37 was reached.
Today's USD/JPY Signals
Risk 0.75%.
Trades may only be entered between 8am New York time and 5pm Tokyo time during 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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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 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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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 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 had no directional bias, especially if the support at 112.93 (which looks weak) breaks down.
I was wrong, the Dollar has made more progress here than I had thought was possible, but the bullish momentum does look weak and uncertain this is not a convincing bullish break. I now have more faith in the support at 112.93 through, and if that or the broken trend line now continue to hold as support, bullish pressure may build for an attempt to move at least as high as 114.18. I am not bullish yet, but I will become so soon if the price holds up.
There is nothing important due today concerning the JPY. Regarding the USD, there will be a release of CPI data at 1:30pm London time.
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