USD/JPY Signal Update
Yesterday’s signals produced a losing long trade off the bullish price action that occurred at 119.70.
Today’s USD/JPY Signals
Risk 0.50%
Trades must be taken from 8am New York time until 5pm Tokyo time only.
Long Trade 1
* Go long following a bullish price action reversal on the H1 time frame immediately upon the next touch of 119.00.
* 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.
Long Trade 2
* Go long following a bullish price action reversal on the H1 time frame immediately upon the next touch of 117.94.
* 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 pointed out yesterday that in spite of the strong move up following the cut in the Yen’s interest rate, there was still a long-term bearish trend and this trend has strongly reasserted itself, with the price falling sharply back to the pre-announcement price area and cutting through support. After such a long fall, we might well get a bounce at the next major support level which is also a round number, at 119.00.
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 later by ISM Non-Manufacturing PMI at 3pm and Crude Oil Inventories at 3:30pm.