USD/JPY Signal Update
Yesterday’s signals were not triggered and expired as there was no bullish price action when the price first reached 119.03 a short while ago.
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
Long entry following a bullish price action reversal on the H1 time frame immediately upon the next touch of 118.00.
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.
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.
Short Trade 1
Short entry following a bearish price action reversal on the H1 time frame immediately upon the first test of 119.25.
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.
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
The USD has been showing weakness more or less across the board, but especially against this pair. It is fascinating to see the USD so bearish against the JPY after what this pair did a few months ago when it went wildly bullish.
The breakdown below the previously supportive trend line is very significant and brings the price below the channel that it had been kept within since the strong bullish move ended a few months ago.
The next likely support is at the whole number of 118.00.
It is probable that a return to the previous support at around 119.25 would see resistance and therefore should be a good location at which to seek a short trade.
There are no high-impact events scheduled today concerning the JPY. Regarding the USD, at 12:30pm London time there will be a release of U.S. Unemployment Claims data.