USD/JPY Signal Update
Last Thursday’s signals produced a profitable long trade off 109.54 but it was only good for about 20 pips. This level was used again as a launching pad that began the current strong upwards move on Friday.
Today’s USD/JPY Signals
Risk 0.75%
Trades may only be entered from 8am New York time until 5pm Tokyo time today.
Short Trades
Go short following a bearish price action reversal on the H1 time frame immediately upon the next touch of 111.81 or 112.21.
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 a bullish price action reversal on the H1 time frame immediately upon the next touch of 110.45.
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
Since the New York open last Friday, the price has been moving up quite strongly, and has really taken off since Tokyo opened this week, breaking up past the former resistance level at 110.74. It looks likely that 110.45 will now act as new higher support.
The next resistance level at 111.81 is very crucial and could be said to be the line in the sand that keeps the theoretical long-term downwards trend alive, so a bearish reversal there would not be a big surprise if it happens.
There is nothing due today concerning either the JPY or the USD. It is a public holiday in both London and New York.