USD/JPY Signal Update
Yesterday’s signals expired without being triggered as the price did not hit either of the key levels.
Today’s USD/JPY Signal
Risk 0.75%
Trades may be entered only before 5pm London time time.
Long Trade 1
Go long following bullish price action on the H1 time frame immediately after the price first reaches 117.75.
Put the stop loss 1 pip below the local swing low.
Adjust the stop loss to break even once 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 run.
Short Trade 1
Go short following bearish price action on the H1 time frame immediately after the price first reaches 120.19.
Put the stop loss 1 pip above the local swing high.
Adjust the stop loss to break even once 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 run
USD/JPY Analysis
The USD had a little bullish run up starting at around the New York open yesterday, and it was most strongly expressed in this pair. The chart below shows a thin and very bullish pennant. The price is now very close to the 120.19 which I have been expecting to act as resistance, so a bearish bounce off this price on the H1 chart could be a good short trade if it happens quite soon. It is difficult to know where to take profit, so a conservative day trade would probably be the best option here.
There are no high-impact data releases scheduled today directly concerning the JPY and it is a public holiday in Japan. Regarding the USD, at 1:30pm London time there will be releases of Core Durable Goods Orders and Final GDP data, followed by New Home Sales data at 3pm.