USD/JPY Signal Update
Yesterday’s signals were not triggered as there was no bearish price action at 106.68.
Today’s USD/JPY Signals
Risk 0.75%
Trades must be entered from 8am New York time to 5pm Tokyo time only.
Short Trade 1
Short entry following a bearish price action reversal on the H1 time frame immediately upon the next touch of 107.82.
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 trade following a bullish price action reversal on the H1 time frame immediately upon the next touch of 105.44.
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.
USD/JPY Analysis
The U.S. Dollar made a strong and impulsive move up yesterday, which is clearly visible in the chart below, but it can also be seen that the Yen stood up against this move better than most other currencies, and has gained a little ground over the past few hours.
I expect that resistance really begins to become apparent close to 107.50, although the key level I have placed up there sits higher at 107.82. There may also be support at 106.50.
The market seems to be expecting something of a U.S. Dollar rally, but if the data is disappointing, we could expect this pair to fall with some strength again back into line with the long-term bearish trend.
There are no high-impact events due today concerning the JPY as it is a public holiday in Japan. Regarding the USD, there will be a release of the ADP Non-Farm Employment Change at 1:15pm London time, followed by the ISM Non-Manufacturing PMI data at 3pm and Crude Oil Inventories at 3:30pm.