USD/JPY Signal Update
Yesterday’s signal was not triggered as the price never reached 121.14.
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.
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.
Long Trade 1
Long entry following a bullish price action reversal on the H1 time frame immediately upon the first test of 118.00.
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.
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 118.75.
USD/JPY Analysis
The broken bearish trend line that was providing bullish support and holding close to 119.00 has finally been truly broken, as have the support levels at 119.00 and above.
We are now going into a different situation as the USD becomes less strong. We have a new trend line acting as resistance some way above and a lot of chop above that. It is not surprising as this pair has effectively been ranging for months. However it now seems that the medium-term trend could probably be downwards.
The next good support is confluent with the whole number at 118.00.
There are high-impact events scheduled today concerning the USD but not the JPY. At 1:30pm London time there will be a release of Building Permits and Unemployment Claims data, followed later at 3pm by the Philly Fed Manufacturing Index.