USD/JPY Signal Update
Yesterday’s signals were not triggered as there was no bullish price action when the price reached 119.31.
Today’s USD/JPY Signal
Risk 0.75%
Trades may only be taken between 8am and 5pm New York time only, and then 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 the bullish trend line currently sitting at around 118.69.
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 ride.
Long Trade 2
Long entry following a bullish price action reversal on the H1 time frame immediately upon the next touch 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 ride.
Short Trade 1
Short entry following a bearish price action reversal on the H1 time frame immediately upon the next touch of 119.31.
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 ride.
USD/JPY Analysis
I wrote yesterday that a move down to 119.60 looked likely and this is what we got. In fact we got more than that after the poor US data released at the New York open sent the USD down even further everywhere.
The chart shows that the previously supportive level at 119.31 flipped very precisely to resistance, so it could be a good level at which to seek a short. The price is also approaching a very long-term bullish lower triangle trend line, which is also a candidate for a possible bullish reversal at around 118.69. Below, there is support at 118.00.
There will be a release of U.S. PPI and Unemployment Claims data at 1:30pm London time today.