USD/JPY Signal Update
Yesterday’s short signal was triggered and should be closed immediately if at a loss or moved to a break even stop if in profit.
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.
Short Trade 1
Short entry after confirming bullish price action on the H1 chart following the first touch of 102.04.
Put a stop loss 1 pip above the local swing high.
Adjust the stop loss to break even when the price reaches 101.75.
Take off 50% of the position as profit at 101.55 and leave the remainder of the position to ride.
USD/JPY Analysis
The JPY rose yesterday very strongly from the support zone I identified yesterday below 100.88. Unfortunately the action did not quite bring us into the long trade there which would have been an excellent position. This was quite a strong rebound to the previous JPY strength and is a fairly significant reversal.
Due to the strength of the upwards move and the action this morning after hitting 101.66, I would look to exit this trade immediately, but be prepared to look for another short trade at 102.04 if it is confirmed by bearish price action.
We are currently at the time of writing retesting the broken bullish trend line from the other side, but the resistance is not acting as strongly as it should to indicate a resumption of a bearish approach to this pair in the short-term.
There is no important news due today for the JPY. At 1:30pm London time there are U.S. Unemployment Claims data followed by Existing Homes Sales at 3pm. This pair should be fairly quiet before then.