USD/JPY Signal Update
Yesterday’s signals provided a long off the nearest bullish trend line with the bullish reversal that occurred during the recent Asian session. An entry was possible at around 121.28 and at the time of writing it is in profit by about 15 pips. It would make sense to take partial profits or at least to take the risk off the trade at around 121.60 where it is likely to run into some resistance. Additional profits should be taken if and when the price runs out of steam somewhere between 121.84 and 122.00.
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 entry into the zone between 121.84 and 122.00.
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.
Long Trade 2
Long entry following some bullish price action on the H1 time frame immediately upon the first test of 120.40.
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.
USD/JPY Analysis
Yesterday we just made a new multi-year high, but the price fell fairly strongly from that level before recovering during the Asian session.
The JPY is not the weakest currency right now, but the USD is extremely strong. There are many supportive levels and trend lines below the current price.
The price should already be on its way up, but we are quite likely to see another bearish reversal at the highs that may give an opportunity for a conservative short trade.
There are no high-impact events scheduled today for either the JPY or the USD today. Therefore it will probably be a relatively quiet day for this pair.