USD/JPY Signal Update
Last Thursday’s signals were not triggered.
Today’s USD/JPY Signals
Risk 0.75%
Trades must be taken between 8am New York time and 5pm Tokyo time only.
Short Trades
Go short following a bearish price action reversal on the H1 time frame immediately upon the next touch of 102.50, 102.74 or 103.10.
Put the stop loss 1 pip above the local swing high.
Move 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 run.
Long Trade 1
Go long following a bullish price action reversal on the H1 time frame immediately upon the next touch of 100.50.
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.
Remove 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
I wrote last Thursday that “A surprise Leave vote should send this pair falling sharply.” The pair actually fell by more than 6%. However it is interesting and significant that the price has recovered a lot from its multi-year low at 99 which was briefly touched last Friday. The highest stage of the retracement of the fall was quite deep, up to about a 50% level.
This suggests that rather than fall, the environment over the coming days may benefit both currencies, leading to a consolidation around or even above the psychologically important 102.50 level.
There is nothing due concerning either the JPY or the USD.