USD/JPY Signal Update
Yesterday’s signals expired without being triggered, however I recommended taking risk off the long trade at 121.60 which worked out well.
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
Go short following some bearish price action on the H1 time frame immediately upon the first 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 first retest of the bearish trend line currently sitting at around 120.96.
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 test of 120.40.
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
There has been a sharp rise and fall in the USD over the past twenty-four hours across the board, but this pair has shown less volatility than most.
At the time of writing we are very close to the nearest bullish trend line. If there is a strong bullish candlestick reversal off this line soon, we could see a renewed push up to 121.84. It is worth being cautious here as there has been a very strong move against the USD over the past few hours. The bullish action needs to look good.
If the trend line breaks, then we are likely to proceed to 120.40, which is another logical area at which a bullish reversal might occur.
There are no high-impact events scheduled today concerning the JPY. Regarding the USD, at 12:30pm London time there will be releases of Retail Sales and Unemployment Claims data.