USD/JPY Signal Update
Yesterday’s signals produced a profitable short trade off the bearish engulfing bar’s rejection on the hourly chart off the resistance identified at 118.00.
Today’s USD/JPY Signals
Risk 0.50%
Trades must be entered between 8am New York time and 5pm Tokyo time only.
Long Trade 1
* Go long following a bullish price action reversal on the H1 time frame immediately upon the next touch of 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 118.72.
* 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.
Short Trade 2
* Go short following a bearish price action reversal on the H1 time frame immediately upon the next touch of 119.65.
* 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
I wrote yesterday that a break up above 118.00 would be the most likely next move and I was right, additionally it feels as if this level has probably now flipped to support. This is the first key level that the bulls have won in this pair for several weeks, which is suggestive of a possible trend change. I see the really crucial level as 119.65. As long as we stay below there in the near future then this pair should have further to fall.
What is really driving this pair is “risk on / risk off” sentiment change, with the Yen being more prized by the market as a risk off currency than the USD, so as risk sentiment has recovered somewhat this morning, the pair begins to rise. Any bad news should send the pair falling again quickly, so longs should beware.
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There is nothing due today concerning the JPY. Regarding the USD, there will be a release of Crude Oil Inventories at 3:30pm London time.