USD/JPY Signal Update
Yesterday’s signals expired without being triggered.
Today’s USD/JPY Signals
Risk 0.50%
Trades must be entered only 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 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 119.66.
* 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.
USD/JPY Analysis
There is a noticeable downwards trend, and the JPY remains the strongest of all currencies, but the USD is also strong. The “flight to safety” that has defined 2016 so far continues into another day, so there is no reason to expect any reversals before the slew of data that is due later begins to arrive.
It looks like there is a new resistance level printing at 118.72 which is not too far away and so might provide a new shorting opportunity. Alternatively, the level at 118.00 might coincide as great support for any meaningful bullish pull back that could happen later.
There is nothing due today concerning the JPY. Regarding the USD, there will be a release of the ADP Non-Farm Employment change at 1:15pm London time, followed by Trade Balance data at 1:30pm and ISM Non-Manufacturing PMI data at 3pm. Finally there will be a release of the FOMC Meeting Minutes at 7pm.