USD/JPY Signal Update
Yesterday’s signals were not triggered as although the price did reach 120.60, there was an hourly close above that level before the bearish reversal, which invalidated the short signal.
Today’s USD/JPY Signal
Risk 0.75%
Trades may only be taken between 8am and 5pm New York time only, or after 8am Tokyo time later.
Long Trade 1
Go long following a bullish price action reversal on the H1 time frame immediately upon the first test of 119.44.
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 run. Take further profit at 120.00.
Long Trade 2
Go long following a bullish price action reversal on the H1 time frame immediately upon the first test of 119.15.
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 run. Take further profit at 120.00.
Short Trade 1
Short entry following a bearish price action reversal on the H1 time frame immediately upon the first test of 121.14.
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.
Remove 50% of the position as profit when the trade is 20 pips in profit and leave the remainder of the position to run. Take further profit at 120.60.
USD/JPY Analysis
The level at 120.60 has been invalidated, but everything else remains intact. The pair was advancing when there was a sudden official comment suggesting a fair value for this pair would be about 105.00 which turned the action bearish.
It looks as if we will probably reach 119.44 next so we may have an opportunity to go long shortly if there is a bullish reversal there.
There are no high-impact events scheduled later today concerning the JPY. Regarding the USD, at 1:30pm London time there will be releases of Retail Sales and PPI data.