USD/JPY Signal Update
Yesterday’s signals produced a losing long trade from the bullish price action at the anticipated support level of 115.54.
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 113.98.
* 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 115.54.
* 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 2
* Short entry following a bearish price action reversal on the H1 time frame immediately upon the next touch of 116.09.
* 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 continued its dramatic fall and even made a new low price that has not been seen since November 2014 when the price was taking off in the other direction like a rocket. What is especially interesting is that we have truly broken down below this pair’s congestion area and very often when areas of previous fast movement are reached in the market, there is a similar fast move in the other direction. This suggests that a break below the support at 114.00 might see a sharp fall all the way down to 110.00.
What is behind all this is the strength of the JPY, in fact this is the strongest global currency right now as there is a lot of fear. It is seen as a safe place to park money. This is a disaster for the Bank of Japan which clearly wants a weaker Yen. This means that we might see an intervention by then designed to weaken the Yen again and that could send the pair flying upwards again. The previous support levels above have flipped to resistance and I suspect the 116 area will prove to be especially resistant. Below, there is crucial support at 114 and I think that is going to be a very interesting level.
There is a lot of action and trading opportunities in this pair, so it is one to focus on right now.
There is nothing due today concerning either the JPY or the USD.