USD/JPY Signal Update
Yesterday’s signals were not triggered as the price never reached 125.50 or 123.30.
Today’s USD/JPY Signals
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
Go long following a bullish price action reversal on the H4 time frame immediately upon the next touch of 124.33.
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.
Long Trade 2
Go long following a bullish price action reversal on the H4 time frame immediately upon the next touch of 123.30.
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.
Long Trade 3
Go long following a bullish price action reversal on the H4 time frame immediately upon the next touch of the bullish trend line currently sitting at around 123.00.
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 run.
Short Trade 1
Go short following a bearish price action reversal on the H4 time frame immediately upon the next touch of 125.50.
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 run.
USD/JPY Analysis
I wrote yesterday that there will probably be resistance at the psychologically key round number of 125.00 and that did provide resistance overnight. Yesterday the price broke up after positive USD news, and is currently falling back but is still above where it was just before the bullish news release. The chart shows a previously resistant double top at 124.33 which may now flip to support. If it does not hold as support, this would be a warning sign that a deeper pullback may be about to begin.
There are no high-impact events scheduled today for either the JPY or the USD.