USD/JPY Signal Update
No signal was given last Wednesday.
Today’s USD/JPY Signal
Long Trade
Go long following bullish price action on the H1 time frame following a first touch of the bullish trend line at about 108.60.
Place the stop loss 1 pip below the local swing low.
Adjust the stop loss to break even when the trade is 25 pips in profit.
Take off 50% of the position as profit when the trade is 25 pips in profit and leave the remainder of the position to run.
USD/JPY Analysis
I wrote last Wednesday that although the USD continues to be at the centre of the Forex market, this pair was no longer the “king” driving everything, as the JPY seemed to be losing its status as the most reliably weak currency. On Wednesday and Thursday the upwards movement of this pair did falter, but it rallied to make a new high on Friday, and again this morning. Right now it looks like one of the better USD pairs to get long USD in, or at least one of the strongest movers, although the USD is falling off everywhere as I write from its earlier highs.
The problem is that there are no obvious flipped supportive levels nearby that look safe for likely long entries, at least not before the 107.50 area, which is too far away from the current price to really be relevant yet.
An alternative method for a long entry could be to make use of the fairly short-term bullish trend line connecting the two recent swing lows, as shown on the chart below.
There are no obvious resistance levels above us, with the probable exception of the psychologically key round number at 110.00.
There are no high-impact data releases scheduled for today concerning either the JPY or the USD. Therefore it is likely to be a quiet day for this pair.