USD/JPY Signal Update
Yesterday’s signals were not triggered as unfortunately the price did not quite reach 111.00 and when it reached 112.42 the bearish price action took place above that level.
Today’s USD/JPY Signals
Risk 0.75%
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 111.00.
* 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 112.69.
* 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
This pair fell quite convincingly below possible support at 112.50 and 112.00 and had almost reached the previous key swing low around 111.00 when the pair short up more than 100 pips on what looked from the chart to be really strong buying between 111.00 and 112.00.
This has all the hallmarks of an intervention by the Bank of Japan who are probably defending 111.00 and want to see the price above 112.00, although it is impossible to know for sure. This means that being short below 112.00 might be dangerous, but the Yen is very strong now and in this market environment it is a great currency to be long of. Therefore I still seek shorts on this pair but will be careful to lock in profits below 112.00.
There is nothing due today concerning the JPY. Regarding the USD, there will be releases of Core Durable Goods Orders and Unemployment Claims at 1:30pm London time.