USD/JPY Signal Update
Yesterday’s signals were not triggered as there was no bullish price action at 109.20.
Today’s USD/JPY Signals
Risk 0.75%
Trades may only be entered from 8am New York time until 5pm Tokyo time.
Short Trades
Go short following a bearish price action reversal on the H1 time frame immediately upon the next touch of 110.74 or 109.89.
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 Trades
Go long following a bullish price action reversal on the H1 time frame immediately upon the next touch of the bullish trend line currently sitting at 108.80, 108.20 or 107.50.
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.
USD/JPY Analysis
It has been a while since any of the major Forex pairs got established within a meaningful channel or even held by a trend line, but finally this flag channel is here and it cannot be ignored. It should be stronger on the lower trend line than the upper, but there may be confluence at the key level of 109.89 and the upper line which could produce a major bearish reversal and a great opportunity to get short. This pair is still in a long-term downwards trend, in spite of the USD strength we have seen over the past couple of weeks. The FOMC release due later might cause the USD to weaken significantly, so there could be a great short opportunity coming.
There are no high-impact events due today concerning the JPY. Regarding the USD, there will be a release of Crude Oil Inventories data at 3:30pm London time, followed later at 7pm by the FOMC Meeting Minutes.