USD/JPY Signal Update
Yesterday’s signals were not triggered as there was no bullish price action at 112.59.
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 112.00.
* 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 114.50
* 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
There is definitely a bid in this pair today, and just about the entire market is moving counter to all the long-term trends. The price was not even able to get back to the 112.00 level earlier and I feel that this is at least partially due to the Bank of Japan stepping in when the price gets below 112.00. It seems as if we are now heading for the 114.00 area, where it will be interesting to see what happens. If the price breaks up above 114.50 that will be an extremely bullish sign.
There is nothing due today concerning the JPY. Regarding the USD, there will be a release of ISM Manufacturing PMI data at 3pm London time.