USD/JPY Signal Update
Yesterday’s signals were not triggered as although there was some support at 112.00 the H1 candle was not strong enough to justify a long trade entry.
Today’s USD/JPY Signals
Risk 0.75%
Trades may only be taken from 8am New York time until 5pm Tokyo time.
Short Trade 1
* Short entry following a bearish 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.
Long Trade 1
* Long entry following extremely bearish price action reversal on the H1 time frame immediately upon the next touch of 111.00.
* Place the stop loss 1 pip above the local swing high.
* 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
* Long entry following extremely bearish price action reversal on the H1 time frame immediately upon the next touch of 110.00.
* Place the stop loss 1 pip above the local swing high.
* 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
The hourly chart below shows that right after the FOMC release yesterday, the price broke below the lower triangle trend line, then came back to retest it from the other side before resuming a strong fall, in a beautiful textbook break and retest pattern.
There was initially some support at 112.00 but the sentiment against the USD is strong and nothing can really prop up that currency yet, so the pair continues to fall.
It is likely that the level at 112.00 will now be acting as resistance if it is retested.
Be very careful about any long trades today if 111.00 is reached.
There is nothing due today concerning the JPY. Regarding the USD, there will be a release of Unemployment Claims and Philly Fed Manufacturing Index data at 12:30pm London time.