USD/JPY Signal Update
Last Thursday’s signals produced an excellent profitable long trade off a bullish engulfing candle bouncing from the supportive trend line at around 119.25.
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 the bullish trend line currently sitting at around 119.21.
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
Short entry following a bearish price action reversal on the H1 time frame immediately upon the next touch of 121.80.
Put the stop loss 1 pip above the local swing high.
Move the stop loss to break even once the trade is 25 pips in profit.
Take off 50% of the position as profit when the trade is 25 pips in profit and leave the remainder of the position to run.
USD/JPY Analysis
In my previous forecast I was expecting the consolidation to continue, and the consolidating trend lines gave a first entry that would have been a successful long trade. It subsequently looked as though the price was breaking out of the top of the triangle, but this breakout failed and at the time of writing we are back again testing the supportive trend line, which might give another long opportunity.
The picture is mixed as there is long term bearish momentum, but it is the lower trend line that is holding more steadily which suggests that the next major move is going to be upwards. Therefore this is probably not the best pair to be trading right now. However an imminent upwards move looks like it could give a long trade with a target at about 121.00.
There is nothing due today regarding the JPY. Concerning the USD, there will be a release of CB Consumer Confidence data at 3pm London time.