USD/JPY Signal Update
Yesterday’s signals were not triggered and expired.
Today’s USD/JPY Signals
Risk 0.75%
Entry may be made only between the London open and New York close, and during the upcoming Tokyo session, but after the Bank of Japan’s Monetary Policy Statement is released entry should only be taken upon confirming bullish price action.
Long Trade 1
Long entry at the first touch of 100.88.
Put a stop loss at 100.58.
Adjust 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.
USD/JPY Analysis
Yesterday we were looking for a short off 101.66. The price has approached within 7 pips of that level before falling again, so I would not look for a short here again just yet.
The past few days had seen a significant strengthening of the JPY and this continued initially yesterday, with the price falling below the 50% Fibonacci retracement at 101.21 and reaching almost to 101.00, before rising quite strongly later in the day and closing the day above both of these levels.
The market is now awaiting the Bank of Japan’s Monetary Policy Statement and although the JPY still has some residual strength, things are looking quite uncertain.
The level at 100.88 is still likely to act as strong support, but all bets are off once the Statement is released, depending upon what the statement says. After the Statement is released, there needs to be bullish price action at that level before I would take a short from there.
There are no high-impact news releases due today concerning the USD. The Bank of Japan’s Monetary Policy Statement will occur during the final few hours of the next Tokyo session, which is very likely to make an impact on the JPY. Therefore the pair may trade fairly quietly before that release, although the JPY has been the subject of speculative interest over the past few days.