Yesterday’s signals were not triggered as there was no bullish price action when the price reached 111.71.

Today’s USD/JPY Signals

Risk 0.75%.

Trades must be entered from 8am New York time until 5pm Tokyo time, during the next 24-hour period only.

Short Trade 1

* Go short following a bearish price action reversal on the H1 time frame immediately upon the next touch of 110.76.

* Place the stop loss 1 pip above the local swing high.

* Adjust the stop loss to break even once the trade is 20 pips in profit.

* Take off 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 1

* Go long following a bearish price action reversal on the H1 time frame immediately upon the next touch of 110.00.

* Place the stop loss 1 pip below the local swing low.

* Adjust the stop loss to break even once the trade is 20 pips in profit.

* Take off 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

The short-term trend has re-joined the longer-term bearish trend. The price has fallen quite strongly and broken below the key support level of 110.76 which has been pivotal over recent days, as shown in the chart below. The price is quite likely to stabilize now for a while before possibly continuing down to attempt a break below 110.00. A pull back to 110.76 could present another selling opportunity.

There is nothing due today regarding the JPY or the USD.