USD/JPY Signal Update
Yesterday’s signals were not quite triggered as the bearish price action occurred just above the anticipated resistance level of 106.25, at 106.30 instead.
Today’s USD/JPY Signals
Risk 0.75%
Trades must be taken from 8am New York time until 5pm Tokyo time only.
Short Trades
Short entry following a bearish price action reversal on the H1 time frame immediately upon the next touch of 106.30, 106.64, and 107.20.
Place the stop loss 1 pip above the local swing high.
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 Trades
Long entry following a bullish price action reversal on the H1 time frame immediately upon the next touch of 105.44 or 104.76.
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
I still do not see an end to the strongly bearish trend yet. There was a rise in price up above the anticipated resistance of 106.25 just after the New York Open yesterday, with quite a fast rise, but the price eventually fell off and then moved lower during the Asian session. The hourly chart below shows that the level of 106.25 has been key in providing yet another line of horizontal resistance. The price is now moving down to seemingly test yesterday’s low, and the picture over both the short and long term looks bearish.
Of course, there may not be much room for any very strong moves before tomorrow’s FOMC releases.
There is nothing due today concerning the JPY. Regarding the USD, there will be a release of Retail Sales data at 1:30pm London time.