USD/JPY Signal Update
Yesterday’s signals were not triggered as there was not sufficiently bullish price action when the price reached 110.45.
Today’s USD/JPY Signals
Risk 0.75%
Trades may only be entered between 8am New York time and 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 110.44, 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 Trades
Go long following a bullish price action reversal on the H1 time frame immediately upon the next touch of 109.54, 109.13 or 108.20.
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
The Japanese government has just announced that the new sales tax will be imposed two and a half years later than originally planned, which has led to an immediate surge in demand for the Yen. This has pushed the price sharply down within the last hour and at the time of writing it is now sitting on the bullish trend line.
The price needs to settle somewhat before we can have any confidence in what is going to happen next, particularly regarding whether this trend line will hold.
There is nothing due today concerning the JPY. Regarding the USD, there will be a release of ISM Manufacturing data at 3pm London time.