USD/JPY Signal Update
There is no outstanding signal.
Today’s USD/JPY Signal
Risk 0.50%
Entry to be made between 8am and 5pm London time today, and then during later Tokyo business hours before 8am London time tomorrow morning.
Long Trade 1
Long trade if confirmed by H1 price action at 102.97.
Stop loss 1 pip below swing low.
Move the stop loss to break even when the trade is 20 pips in profit.
Remove 50% of the position as profit at 103.45 or when the stop loss has been moved to break even if that occurs later. Leave the remainder of the position to run until a final exit at 103.95.
USD/JPY Analysis
This is our first return to this pair since 24th March. Since then the pair mostly chopped around, forming a consolidating triangle. Earlier this week, the price broke bullishly out of this triangle, quickly retested it and took off again upwards. Just as the true breakout happened (there was an initial failed attempt), resistance flipped into support at 102.97, just below a round number. This level is now almost confluent with the broken bearish trend line. We already had a quick retest which led to a push upwards, but if we fall back there today, watch for bullish price action confluent with a retest of that trend line and the support level that is confluent with it.
We have just broken the March high at 103.75 and have yet to fall significantly from there. However when we were last above 104, there was some heavy selling so it is quite likely that we will take some time to really exceed that round number there.
The higher time frame candlestick analysis is bullish on all frames.
Today there is no JPY-specific high-impact data scheduled for release, but at 1:15pm we will have the US ADP Non-Farm Employment Change data.