USD/JPY Signal Update
Yesterday’s signal expired without being triggered.
Today’s USD/JPY Signal
Risk 0.75%
Trades may only be taken between 8am London time and 5pm New York time only, or after 8am Tokyo time later.
Long Trade 1
Go long following some bullish price action on the H1 time frame immediately upon the first retest of the broken bearish trend line shown on the chart below the current price. The trend line is currently sitting at around 118.93.
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
Go short following some bearish price action on the H1 time frame immediately upon the first touch of 119.94.
Put the stop loss 1 pip above the local swing high.
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.
USD/JPY Analysis
Yesterday’s forecast saw the next move as being upwards, which was suggested by an earlier bullish breakout above an inner bearish trend line. This was exactly what happened over the next 24 hours, as the price broke up out of the longer-term triangle. A pull back now to the broken trend line followed by a fast bullish re-launch would be a great opportunity for a long trade. Alternatively, if we proceed straight up to the flipped resistance confluent with the big whole number at 120.00 which will be psychologically significant, it would be a logical place for a bearish reversal to print and follow through with a fall in price.
There are no high-impact data releases scheduled for later today concerning either the JPY or the USD. Wednesday is a public holiday in Japan. Therefore it is likely to be a very quiet day for this pair, unless there is unforeseen news.