USD/JPY Signal Update
Yesterday’s signals expired without being triggered.
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 H1 time frame immediately upon the next touch of 121.77.
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 H1 time frame immediately upon the next touch of 121.47.
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 H1 time frame immediately upon the next touch of 123.20.
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.
Short Trade 2
Go short following a bearish price action reversal on the H1 time frame immediately upon the next touch of 124.25.
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
None of the key levels have been touched yet, so the likely turning points still remain the same today. The major thing that stands out is that the JPY has been strong lately, and it is generally believed that this is due to the Euro crisis. For reasons I have never truly understood, the JPY is regarded as something of a safe haven currency, so money has been flowing into the JPY. At the time of writing, we are making a new multi-week low that has not been matched since May, so we are quite possibly due for a bullish turnaround. A logical point for this to happen would be somewhere below the round number at 122, with the exact supportive levels looking like 121.77 and 121.47, the latter of which is close enough to 50.
There are no high-impact events scheduled today concerning the JPY. Regarding the USD, there will be a release of CB Consumer Confidence data at 3pm.