USD/JPY Signal Update
Yesterday’s signals were not triggered as there was no bullish price action at 113.98.
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 110.00.
* 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
* Short entry following a bearish price action reversal on the H1 time frame immediately upon the next touch of 114.21.
* 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.
USD/JPY Analysis
I wrote yesterday that a strong breakout from the consolidation zone this price was sitting within for a couple of days above 114.00 or so was likely, and this is exactly what happened. The force of this downwards trend has been immense and we are now in sight of 110.00 which was the base of the previous huge upwards move this pair saw late in 2014. I suspect that if/when we get to 110.00 the price will settle down as it will be a kind of natural support.
The Bank of Japan probably do not want the Yen to be so strong, so there is a real danger of a surprise intervention that might send the price flying up. It could be wise to lock in any floating short profits to try to protect against this.
There is nothing due today concerning the JPY. Regarding the USD, there will be a release of Unemployment Claims data at 1:30pm London time. The Chair of the Federal Reserve will be testifying before Congress at 3pm.