USD/JPY Signal Update
Last Thursday’s signals expired without being triggered.
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 123.00.
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
This pair has fallen very sharply as the concern over a China-led slowdown has the heavy impact of strengthening the Yen. With a weak U.S. dollar right now, it makes for something of a perfect storm. The price has sliced through support like a knife through butter, but may be bottoming out now as it approaches key support close to 120.49 and fails to make any new lows for a few hours at least.
There might be a long-short long trade somewhere around here, but I do not see any obvious strong shorting opportunities below 123.00, although there may be local resistance at around 121.80.
There is nothing due today concerning either the JPY or the USD.