USD/JPY Signal Update
Yesterday’s signals were not triggered as neither of the key levels were reached.
Today’s USD/JPY Signals
Risk 0.75%
Trades must be taken from 8am New York time to 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 111.00.
* 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
* Go short following a bearish price action reversal on the H1 time frame immediately upon the next touch of 112.42.
* 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.
USD/JPY Analysis
There is a strong downwards trend and this pair has managed to establish itself below the key support that was at about 112.50, which now seems to have flipped to resistance at 112.42. Due to the strong trend and the Yen’s current position as the strongest of all major currencies, short trades look good, ideally off any pullback to 112.42.
There may be a good bounce off 111.00 or 110.00 and of course there is always the chance that the Bank of Japan could intervene and start selling Yen, driving the price up.
There is nothing due today concerning the JPY. Regarding the USD, there will be a release of Crude Oil Inventories data at 3:30pm London time.