USD/JPY Signal Update
Last Thursday’s signals were not triggered as there was no bearish price action at any of the key resistance levels.
Today’s USD/JPY Signals
Risk 0.50%
Trades must be taken only from 8am New York time until 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 120.64.
* 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 119.70.
* 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 121.75.
* 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 122.11.
* 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
The Bank of Japan gave a surprise interest rate cut last Friday which caused the price to go shooting up to come to rest in an area where it has spent a lot of time over the previous year or so. However
if you look at a longer-term chart you can see that over recent months there is still a bearish shape to the action and this has not been invalidated. Nevertheless the Bank of Japan clearly wanted the Yen to be weaker and that is hard to argue with so I think we are going to see the price remain above 120.00 but not necessarily go much further higher than it already has done, at least for a while longer yet.
Concerning the USD, there will be a release of ISM Manufacturing data at 3pm London time. There is nothing due regarding the JPY.