USD/JPY Signal Update
Last Wednesday’s signals expired without being triggered as there was no bearish price action at any of the key levels.
Today’s USD/JPY Signal
Risk 0.75%
Trades may only be taken between 8am and 5pm New York time only.
Long Trade 1
Go long if the price at 10am London time today is above 120.20.
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 at 120.70.
Long Trade 2
Long entry following a bullish price action reversal on the H1 time frame immediately upon the next touch of 119.36.
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.
Short Trade 1
Short entry following a bearish price action reversal on the H1 time frame immediately upon the next entry into the zone between 120.92 and 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.
Short Trade 2
Go short following a bearish price action reversal on the H1 time frame immediately upon the next touch of 120.92
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.
USD/JPY Analysis
The USD was hit fairly hard yesterday by the poor economic data from the U.S., however as has been the case lately, the JPY seems to be more in sync with the USD lately and this has continued. There were also no surprises or changes from the Bank of Japan’s Monetary Policy Statement.
The bullish trend line at 118.60 is in serious danger, but is just about holding. However I would not look for another long trade there just yet.
Above the resistance at 119.41 now looks more obvious so is a valid area at which to look for a short.
There are high-impact events scheduled today concerning the USD only as it is a public holiday in Japan today. There will be a release of Trade Balance data at 1:30pm London time, followed later at 3pm by ISM Non-Manufacturing PMI.