USD/JPY Signal Update
No signals were given for this pair.
Today’s USD/JPY Signals
Long Trade 1
Go long at the first touch of 100.88.
Place the stop loss at 100.58.
Move the stop loss to break even when the price reaches 101.35 and remove 50% of the position as profit.
Close half of the remainder of the position as profit at 101.65 and then close the entire position at 102.00.
Short Trade 1
Go short following confirming bearish price action on the H1 chart after the first touch of 101.66.
Place the stop loss 1 pip above the local swing high.
Move the stop loss to break even when the price reaches 101.35.
Remove 50% of the position as profit at 101.35 and the remainder of the position at 100.90.
USD/JPY Analysis
The end of last week saw some significant developments. First of all, we had a weekly close below the very long-term bullish trend line. Secondly, over recent days the JPY has become the strongest global currency.
These developments call into question the long-term weakness of the JPY, at least for some time going forward. These indications will be strengthened by any forthcoming daily or weekly closes below the key support level of 100.88 and the 50% Fibonacci retracement level of last year’s upwards move, which sits at 101.21.
The short bias is further confirmed by the fact that we have been flipping support to resistance now at 103.00, 102.04, and most recently at 101.66.
Therefore I am looking for a short trade today if confirmed by bearish price action off a return to the 101.66 level.
As we are some distance from 100.88, which has acted as both key support and resistance over recent months, I would look to take a long touch trade off the first touch of this level at any time before tomorrow’s London open.
I was overly pessimistic last Thursday in not having confidence in a short off 102.04. This would have been an excellent trade.
There are no high-impact news releases scheduled today concerning either the USD or the JPY. Therefore it is likely to be a quiet day for this pair, although trading has been fairly lively during today’s Tokyo session, with the pair making a new low.