USD/JPY Signal Update
Yesterday’s signals expired without being triggered as the price never reached either 119.20 or 118.00.
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.
Short Trade 1
Short entry following some bearish price action on the H1 time frame immediately upon the first retest of 119.20.
Place the stop loss 1 pip above the local swing high.
Move the stop loss to break even once the trade is 20 pips in profit.
Take off 50% of the position as profit when the trade is 20 pips in profit and leave the remainder of the position to ride.
Long Trade 1
Long entry following some bullish price action on the H1 time frame immediately upon the first retest of the broken trend line which is currently sitting at about 117.80 and/or the level at 118.00 itself.
Place the stop loss 1 pip below the local swing low.
Move the stop loss to break even once the trade is 20 pips in profit.
Take off 50% of the position as profit when the trade is 20 pips in profit and leave the remainder of the position to ride.
USD/JPY Analysis
Yesterday was a very quiet day for this pair, as it was for the entire Forex market. There has been no change to the technical picture: a log-term consolidation with a bearish tint; likely support below at the confluence of a broken trend line and a flipped resistance to support level; likely resistance above at the established level of 119.20. It is likely not much will happen before the Bank of Japan's statement late in the upcoming Tokyo session, so the next big move is likely to be news-driven and unpredictable.
Very late in the next Tokyo session, there will be a Bank of Japan Monetary Policy statement plus a press conference which normally has an important affect upon the JPY. There are no events scheduled for the USD today but as yesterday was a public holiday in the USA it is quite likely there will be an appetite in the US market, leading to a day with some healthy volatility for this pair.