USD/JPY Signal Update
Last Thursday’s signals were not triggered as an hourly candle got just too far below the anticipated support at 111.00. However this level has basically held as support so was well identified.
Today’s USD/JPY Signals
Risk 0.75%
Trades must be entered between 8am New York time and 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 112.00
* 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.
Long Trade 1
* Go long following extremely bearish price action reversal on the H1 time frame immediately upon the next touch of 111.00.
* Put the stop loss 1 pip above the local swing high.
* 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
The price remains right in the middle of the very large range made within 1 hour last Thursday, which runs from 112.00 to 110.66. There are signs that the price was supported at 111.00 as it has been before, possibly by an entity with deep pockets such as the Bank of Japan. The line of least resistance looks to be upwards for the short-term, but the area at around 112.00 is likely to prove to be resistant, and might give a short trade entry back into the direction of the longer-term trend, which is unambiguously bearish.
There is nothing due today concerning either the JPY or the USD.