USD/JPY Signal Update
Yesterday’s signals gave a profitable long trade from the eventual bounce up from the supportive level at 120.49. It is probably worth exiting from the trade now as there is preliminary evidence that 121.50 has flipped from support to resistance.
Today’s USD/JPY Signals
Risk 0.50%
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 120.49.
- 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.
- 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 122.95.
- 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.
- 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
The pair fell sharply yesterday, reaching a low during the Asian session not too far from the psychologically important 120 level. However the expected support at 120.49 did kick in and hold the price, pushing it up to the previous support now flipped to resistance at 121.49, from where it has been falling.
If the price can break above 121.50, it would be a sign of a serious bullish recovery. Alternatively, a fall to 120.50 could provide another long opportunity.
There is nothing due today regarding the JPY. At 1:30pm London there will be a release of U.S. Unemployment Claims data.