USD/JPY Signal Update
Tuesday’s signals 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.
Risk should be taken off any trade by 5:30pm
Short Trade 1
• Go short following some bearish price action on the H1 time frame immediately upon the next entry into the zone between 121.84 and 122.00.
• 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
• Go long following some bullish price action on the H1 time frame immediately upon the next test of the bullish trend line currently sitting at around 120.94.
• 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.
Long Trade 2
• Go long following some bullish price action on the H1 time frame immediately upon the first entry into the zone between 120.47 and 120.39.
• 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
I was correct in being sceptical last Tuesday of the closest bullish trend line. The price went nowhere and the line was broken. It is probable that the price will continue to be flat before the FOMC data later tonight after London closes. However there is a new bullish trend line currently sitting just under the whole number at 121.00 which may be supportive and could provide an early long entry.
There are no high-impact events scheduled today concerning the JPY. At 6pm London time the U.S. Federal Reserve will be releasing the latest Federal Funds Rate and FOMC Statement and Projections. This will be very likely to have a heavy impact upon the USD.