USD/JPY Signal Update
Yesterday’s signals expired without being triggered as there was no bullish price action at 116.66.
Today’s USD/JPY Signals
Risk 0.50%
Trades must be entered between 8am New York time and 5pm Tokyo time.
Long Trade 1
* Go long following a bullish price action reversal on the H1 time frame immediately upon the next touch of 116.09.
* 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 115.54.
* 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 116.66.
* 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 117.69.
* 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
Risk sentiment has reverted back to its default position over previous weeks: averse! With this has come a fairly sharp rise in the Japanese Yen in line back in line with its long-term trend after failing to hold up above the 118.00 area. The Japanese Yen is currently seen as a primary safety asset.
The price has broken a multi-month low but at the time of writing may be finding support at 116.09. If the price is held by this level until New York opens and then reverses bullishly, it could be a good trade, but be careful as this is against the trend.
Should we reach 116.66 this could give another good opportunity enter a short trade.
Concerning the USD, there will be releases of Building Permits and CPI data at 1:30pm London time, followed later by Crude Oil Inventories at 3:30pm. There is nothing due regarding the JPY.