USD/JPY Signal Update
Last Thursday’s signals produced a nice profitable long trade as the price bottomed that day almost to the pip off the anticipated support at 119.50.
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 the bullish trend line currently sitting at around 118.00.
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 121.80.
Place the stop loss 1 pip above the local swing high.
Adjust the stop loss to break even once the trade is 25 pips in profit.
Remove 50% of the position as profit when the trade is 25 pips in profit and leave the remainder of the position to ride.
USD/JPY Analysis
A look at the chart below shows that this pair has really been going nowhere for about 5 weeks now. There was nice support at 119.50 but that has been used now so the next reliable support I see is all the way down at 118.00, although of course some support would be very likely to kick in before 118.00 is reached. One way to trade this would be to just buy below 119 and sell above 121, but the Bank of Japan will be releasing a crucial report towards the end of the next Asian session which could be material to the next price movement so be careful.
Concerning the USD, there will be a release of Unemployment Claims data at 1:30pm London time, followed by ISM Manufacturing PMI at 3pm. Regarding the JPY, the Bank of Japan will be giving their monthly Monetary Policy Statement just before the close of the Asian session.