USD/JPY Signal Update
Yesterday’s signals were not triggered and expired.
Today’s USD/JPY Signals
Risk 0.75%
Trades must be taken from 8am New York time until 5pm Tokyo time.
Short Trade 1
* Go short following a bearish price action reversal on the H1 time frame immediately upon the next touch of 114.50
* Put the stop loss 1 pip below the local swing low.
* Move the stop loss to break even once the trade is 20 pips in profit.
* Take off 50% of the position as profit when the trade is 20 pips in profit and leave the remainder of the position to run.
Short Trade 2
* Go short following a bearish price action reversal on the H1 time frame immediately upon the next touch of 115.54
* Put the stop loss 1 pip below the local swing low.
* Move the stop loss to break even once the trade is 20 pips in profit.
* Take off 50% of the position as profit when the trade is 20 pips in profit and leave the remainder of the position to run.
USD/JPY Analysis
I wrote yesterday that the price seemed to be heading up to the 114.00 area, and this is what happened. Although this pair is in a fairly strong long-term downwards trend, the pair has been quite heavily bid since making a double bottom at 111.00. However we have almost arrived at the area from which there was previously strong selling, which begins at around 114.50, so it is quite possible there could be a major selling opportunity close by. This might well hinge on whether the key U.S. data due later will be very positive or negative for the USD. If 114.50 does not hold, then possible bearish turns at 115.00 or above come into view.
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 Crude Oil Inventories at 3:30pm.