USD/JPY Signal Update
Yesterday’s signals may have been triggered late in the Asian session by the bullish bounce from 106.83, giving a winning trade of at least 20 pips.
Today’s USD/JPY Signals
Risk 0.75%
Trades may only be entered between 8am New York time and 5pm Tokyo time.
Short Trade 1
Go short following a bearish price action reversal on the H1 time frame immediately upon the next touch of 108.20.
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.
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 Trade 1
Go long following a bullish price action reversal on the H1 time frame immediately upon the next touch of 106.50.
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.
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
I wrote yesterday that a sharp bearish turn will still be a logical future development to watch for, with 108.20 being the most probable area for this turn to happen. It did not occur at 108.30, in fact the price never even reached 108.00, but the price sold off twice, finally from 107.75 around the New York open, which was a good signal to enter a short trade. The price was initially held up at around 107.25 before being able to fall further during the Asian session, although there are signs of support beginning at 106.83 as had been expected to be likely.
I would not look for another long trade at 106.83 yet as we have just had a bounce from there.
This pair is in a strong downwards trend but might pull back today.
There is nothing due today concerning the JPY. Regarding the USD, there will be a release of Crude Oil Inventories data at 3:30pm London time.