USD/JPY Signal Update
Yesterday’s signals were not quite triggered as the price did not really drop into the zone below 120.28 until it was too late.
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 entry into the zone between 120.28 and 120.08.
Place 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.
Remove 50% of the position as profit when the trade is 20 pips in profit and leave the remainder of the position to ride.
Long Trade 2
Go long following a bullish price action reversal on the H1 time frame immediately upon the next touch of 119.66.
Place 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.
Remove 50% of the position as profit when the trade is 20 pips in profit and leave the remainder of the position to ride.
Short Trade 1
Go short following a bearish price action reversal on the H1 time frame immediately upon the next touch of 121.79.
Place 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
The USD got some strength yesterday following the FOMC report but the problem is that the JPY has been strong lately and this strength also persists. So even though that news was able to push this pair up from the support just above 120.00, the price seems to be ready to fall back there. The signs are that this pair is not going to be the place to exploit either currency, although that could change if we get any surprises from the Bank of Japan’s Monetary Policy Report tomorrow.
The key levels are all still in place. There may be additional local support at 120.50.
Regarding the USD, there will be a release of Advance GDP and Unemployment Claims at 12:30pm London time. Concerning the JPY, the Bank of Japan will release their Monetary Policy Statement and Outlook Report at about 6am.