USD/JPY Signal Update
Yesterday’s signals expired without being triggered as there was no bullish price action at 120.49.
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
• Long entry following a bullish price action reversal on the H1 time frame immediately upon the next touch of 118.00.
• Put the stop loss 1 pip below the local swing low.
• Adjust the stop loss to break even once the trade is 30 pips in profit.
• Remove 50% of the position as profit when the trade is 30 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 116.82.
• Put the stop loss 1 pip below the local swing low.
• Adjust the stop loss to break even once the trade is 30 pips in profit.
• Remove 50% of the position as profit when the trade is 30 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 121.78.
• 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.
• 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
This pair was the biggest mover yesterday of all the major pairs and it really was an incredible turnaround, with the price getting close to 116.00 at around the time that New York opened. To put that in perspective, this was the largest move upwards by the Japanese Yen for several years, and was a move of about 800 pips from a typical price last week, which is a massive change. Of course, like everything else in the market, this instrument recovered quite a lot, reaching the key 120.00 level during the late Asian session before falling off, and at the time of writing we seem to have stabilised at around 119.50.
It is challenging to produce effective technical analysis after such massive and wild price movements, as key support and resistance levels tend to just get blown away and you are left without any reliable reference points. This is very much the case in this pair, as several levels were cut through, not to mention a very long-term trend line that had been supportive for months and has now just been blown away completely. However, as the move downwards was a sudden spike with a fast recovery, I will leave on the chart the supportive levels at 118.00, 116.82, and 115.54.
It is doubtful that there are going to be any opportunities today, the market will have to settle down for a while probably before it will become more predictable to trade.
There is nothing due today concerning the JPY. Regarding the USD, there will be a release of CB Consumer Confidence data at 3pm London time.