USD/JPY Signal Update
Yesterday’s signals expired without being triggered as the bullish price action on the hourly chart occurred below the anticipated support level of 117.94.
Today’s USD/JPY Signals
Risk 0.50%
Trades may only be entered from 8am New York time until 5pm Tokyo time.
Long Trade 1
* Long entry following a bullish price action reversal on the H1 time frame immediately upon the next touch of 116.09
* 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 118.78.
* 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.
Short Trade 2
* Short entry following a bearish price action reversal on the H1 time frame immediately upon the next touch of 119.65.
* 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
If you looked at a daily chart just before the weekly close last Friday, you would have seen a very bullish-looking formation suggestive of a continuing move up to something like the 120 area.
However the price was actually just bumping up against a very well-defined resistance level I have had marked for some time, at 118.78, and has now begun falling from there as last week’s risk rally stalls. The risk rally was pushing down the Yen, but is no longer in force to do so.
It looks as if the price will now fall to 117.94 where it might find support and begin to move up again.
Concerning the USD, there will be a release of CB Consumer Confidence data at 3pm London time. There is nothing due regarding the JPY.