USD/JPY Signal Update
Yesterday’s signal expired without being triggered.
Today’s USD/JPY Signal
Risk 0.75%
Enter only until 5pm New York time or between 8am Tokyo time and 8am London time (Friday).
Short Trade
Short entry following bearish price action on the H1 time frame after a first touch of 107.50.
Put a stop loss 1 pip above the local swing high.
Move the stop loss to break even once the trade is 20 pips in profit.
Remove 50% of the position as profit once the trade is 20 pips in profit and leave the remainder of the position to run ensuring there is no risk left in the trade.
USD/JPY Analysis
Yesterday I questioned whether this pair really has the momentum to break above 107.50 with any conviction in the near future. So far the pair has not been above to break above the 107.38 level which is really the beginning of a resistant zone (it was a key high during the move up some weeks ago). My colleague Christopher Lewis is very bullish and suggests that we will break this level and that the low made earlier this week is going to hold.
A good approach should be to watch carefully what happens when the 107.50 level is hit, which might well happen today. If the price action is very bearish, it should still be a good short trade. If there is a sustained break, the pair should proceed at least as high as 108.60 in the short term.
There are no high-impact data releases scheduled today concerning the JPY. Regarding the USD, there will be a release of US Unemployment Claims data at 1:30pm London time, so the New York session is likely to be the most active time today.