USD/JPY Signal Update
Yesterday’s signal was not triggered despite 108.75 being hit as there was no bullish price action on the H1 chart at that price.
Today’s USD/JPY Signal
Risk 0.75%
Entries may only be taken before 5pm New York time or between 8am Tokyo time and 8am London time tomorrow.
Long Trade
Go long following bullish price action on the H1 time frame following a first touch of 107.50.
Put the stop loss 1 pip below the local swing low.
Move the stop loss to break even when the trade is 25 pips in profit.
Remove 50% of the position as profit when the trade is 25 pips in profit and leave the remainder of the position to ride. Ensure the risk is taken off the trade.
USD/JPY Analysis
Yesterday saw a very significant sell-off of this pair, with the USD weakening and the JPY strengthening across the board. Again, it is USD/JPY that is the king of the market. The sell-off was a little surprising as there was nothing wrong with the US economic data that seemed to trigger it, so it may really have been profit taking from this pair hitting the key psychological level of 110.00, as I had predicted.
In any case, the pair fell sharply during the New York and Tokyo sessions, breaking below the minor bullish trend line, although the fall is starting to find some support at around 108.50 which was previously supportive.
The daily chart shows that yesterday printed a fairly large bearish engulfing reversal candle, suggesting some continued move down. However as we have been in a strong trend, it may turn around again.
We have key US data later today and especially tomorrow with the NFP and we can probably expect the price to remain quite steady now for a few hours until that data starts being released.
A continued fall down to the 107.50 area could see a nice bounce up so I would be looking for an opportunity to go long there, if confirmed by bullish price action.
There are no high-impact data releases scheduled for today which are likely to affect the JPY, but there is for the USD. At 1:30pm London time there will be the release of US Unemployment Claims data. Therefore this pair is likely to be quiet before the New York session.