USD/JPY Signal Update
Yesterday’s signals gave a long trade entry following the bullish break of an inside bar rejecting the support at 120.25 during the earlier Tokyo session.
Today’s USD/JPY Signals
Risk 0.50%
Trades may only be taken from 8am New York time to 5pm Tokyo time.
Long Trade 1
* Long entry following a bullish price action reversal on the H1 time frame immediately upon the next entry into the zone between 120.02 and 120.25.
* Put 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.
Long Trade 2
* Long entry following a bullish price action reversal on the H1 time frame immediately upon the next touch of 119.65.
* Put 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 121.75.
* Put 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
It seems more likely that I was correct about a bullish reversal happening somewhere between 120.50 and 120.00. This area has been supportive and there are signs that we may have bottomed out and are ready now for some kind of upwards move. The bigger question is how far this move might go. It is quite probable that 121.00 will be resistive, and then the whole area from about 121.40 up to the major level at 121.75 might also provide resistance, so longs will have to be treated carefully.
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.