USD/JPY Signal Update
Yesterday’s signals suggested a long trade off the bullish trend line at 118.60 but there was no upwards momentum on the following hourly candle after the first bounce up off that trend line.
Today’s USD/JPY Signal
Risk 0.75%
Trades may only be taken between 8am and 5pm New York time only, and then from 8am Tokyo time until 5pm Tokyo time.
Short Trade 1
Go short following a bearish price action reversal on the H1 time frame immediately upon the next touch of 120.07
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.
Short Trade 2
Go short following a bearish price action reversal on the H1 time frame immediately upon the next touch of 119.41
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.
Long Trade 1
Go long following a bullish price action reversal on the H1 time frame immediately upon the first test 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.
USD/JPY Analysis
Despite the USD bullishness yesterday, this pair barely moved. It remains waterlogged and just isn’t providing any good opportunities, although that may change with the FOMC news release after London closes later today and then the Bank of Japan’s statement some hours later. It is likely to be very quiet in advance of these releases but the next 24 hours should probably give some direction and will certainly increase volatility.
There are high-impact events scheduled today concerning the USD but not the JPY. There will be a release of U.S. Unemployment Claims data at 1:30pm London time.