USD/JPY Signal Update
Yesterday’s signals expired without being triggered.
Today’s USD/JPY Signal
Risk 0.75%
Trades may be entered only before 5pm New York time, and then after 8am Tokyo 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 121.00.
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 JPY was one of the strongest currencies yesterday and we had a considerable pull back. It is interesting that this pair, which has been the strongest and longest-running trending pair by far, seems to be running out of steam over recent days. We have not made a new high for almost 4 weeks and the more medium-term trend is starting to look like a downwards one. Having said that, there is still plenty of movement within the swings, so there is no reason why 117.75 will not produce a reasonable long trade.
There is a high-impact data release scheduled today concerning the USD, but nothing regarding the JPY. At 3pm London time, there will be a release of U.S. ISM Non-Manufacturing PMI data.