USD/JPY Signal Update
Yesterday’s signals expired without being triggered.
Today’s USD/JPY Signal
Risk 0.75%
Trades may be entered only between 8am and 5pm London time, and then after 8pm London time until 8am Tokyo time later.
Long Trade 1
Long entry following bullish price action on the H1 time frame immediately after the price first reaches 116.82.
Put the stop loss 1 pip below the local swing low.
Adjust the stop loss to break even once the trade is 20 pips in profit.
Remove 50% of the position as profit when the trade is 20 pips in profit and leave the remainder of the position to run.
Short Trade 1
Short entry following bearish price action on the H1 time frame immediately after the price first reaches 119.94.
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
This pair is amusing: it is consolidating within a narrowing triangle, within a larger narrowing triangle! This gives an idea of how strongly these two currencies are just ranging against each other. It is indicative that the huge moves we saw during the second half of 2014 have pretty much worked their way out. Huge moves tend to caused ever-decreasing choppy waves as they end, and what this pair has done over the previous few weeks is an excellent example of that.
Technically, there is nothing new to add. It may well be that a breakout from the smaller triangle will indicate which key level we are going to reach first. The big USD news tonight is likely to be a catalyst for that breakout.
There are no high-impact data releases scheduled today concerning the JPY, but there are regarding the USD later after London closes. At 7pm London time there will be a release of the FOMC Statement and Federal Funds Rate. This might have a big impact upon the USD.