USD/JPY Signal Update
Yesterday’s signals expired without being triggered as although the bearish trend line was hit, the price closed above it before reversing so there was no valid reversal there.
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 some bullish price action on the H1 time frame immediately upon the first test of the inner bullish trend line currently sitting at around 118.86.
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
The pair continued to rise and finally reached a fairly long-term bearish trend line above the psychologically important 120.00 level. It did turn around and fall but this happened above the trend line.
As resistance above is unclear, the better trade looks to be going long after some kind of pull back. There might be local support at around 119.50, but the nearest clear level is the inner bullish trend line currently sitting at around 118.86. There is a longer-term bullish trend line below that at around 118.21 which should really be supportive, especially if the rejection is combined with a failed test of the supportive horizontal level at the whole number of 118.00.
There are no high-impact events scheduled for the JPY or USD today, so it is likely to be a quiet day for this pair.