USD/JPY Signal Update
Yesterday’s signals were not triggered as there was no bullish price action right at the key support levels that were reached.
Today’s USD/JPY Signals
Risk 0.75%
Trades must be taken from 8am New York time until 5pm Tokyo time today.
Short Trades
Short entry following a bearish price action reversal on the 1H1 time frame immediately upon the next touch of 109.68, 110.19 or 110.44.
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 108.20 or 107.50.
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
There has been a really key development in this pair as the long-term downwards trend has resumed with a strong bearish push which has broken a fairly long-term supportive trend line, shown in the chart below. The move down has wiped out support levels and created new resistance. The broken trend line, if retested, can also be anticipated to be resistant.
Should the forthcoming USD high-impact data due later today and tomorrow be poorer than expected, we can expect this pair to fall even further. There are no key levels before 108.20 so that would be a natural target.
Note that the price is below its levels of 3 and 6 months ago which is a strong sign of a good long-term bearish trend.
There is nothing due today concerning the JPY. Regarding the USD, there will be a release of the ADP Non-Farm Employment Change at 1:15pm London time, followed by Unemployment Claims data at 1:30pm and Crude Oil Inventories at 4pm.