USD/JPY Signal Update
Yesterday’s signals were not triggered and expired.
Today’s USD/JPY Signal
Risk 0.75%
Entries must be made either before 5pm today New York time, or between 8am Tokyo time and 8am London time tomorrow (Thursday).
Long Trade 1
Go long at the first touch of 101.50.
Place the stop loss at 101.15.
Move the stop loss to break even when the price reaches 101.90 and leave the trade to ride.
Short Trade 1
Short entry following confirming bearish price action on the H1 chart after a first touch of 103.00.
Place the stop loss 1 pip above the local swing high.
Move the stop loss to break even when the price reaches 102.70.
Move 50% of the position as profit at 102.45, and then leave the remainder of the position to ride.
USD/JPY Analysis
Yesterday printed a doji which suggested we would have a pull-back, and sure enough the Tokyo session earlier did see a pull-back. We flipped resistance to support yesterday at 102.04 but it is too soon to use this as a safe support level for a potential long trade, although it may well hold.
The pair has been quite active over the past day, powering up to reach a high of 102.35. It has been one of the strongest movers in the Forex universe over this period.
It is still unlikely that we will reach either of the interesting levels at 101.45 or 103.00 any time soon, but if the Governor of the Bank of Japan says anything dramatic towards the end of the next Tokyo session, we just might.
At 1:30pm London time, there will be a release of US PMI data which could affect the USD. Tomorrow morning at 5:25am, the Governor of the Bank of Japan will be speaking, which could affect the JPY. Therefore it is likely to be a quiet morning for this pair.