USD/JPY Signal Update
Yesterday’s signals expired without being triggered as the bearish price action took place above 118.78.
Today’s USD/JPY Signals
Risk 0.50%
Trades may only be entered between 8am New York time and 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 117.94.
* 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 the descending trend line currently placed at about 117.63.
* 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 119.66.
* 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 120.00.
* 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
In spite of the general weakening of the USD, this pair has held up as the Yen has weakened even more. We have a fairly bullish picture although the price is down over the long term. So far the price has not been able to get above 119.00 where there is minor resistance. However above there we find really key, pivotal levels such as 119.65 and the big psychological number of 120.00 above which we really would have to say the long-term downwards bias was over.
The Bank of Japan release their monthly report towards the end of the next Asian session and that is likely to cause volatility. If they send out a very dovish message we should hit 119.65 and in the meantime it is very likely the price will stay above 117.94.
Concerning the USD, there will be releases of Core Durable Goods Orders and Unemployment Claims data at 1:30pm London time. There is nothing due regarding the JPY.