USD/JPY Signal Update
Yesterday’s signals were not triggered as there was no bearish price action at either 101.46 or 102.16.
Today’s USD/JPY Signals
Risk 0.75%
Trades may only be entered from 8am New York time until 5pm Tokyo time.
Short Trades
No short trades today.
Long Trade 1
Long entry following a bullish price action reversal on the H1 time frame immediately upon the next touch of 102.16 or 101.46.
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.
Take off 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
The Japanese government has announced a new round of fiscal stimulus, i.e. more Yen which all other things being equal will weaken the Yen and quite possibly end the long-term downwards trend in this pair. However it is worth being technically cautious as long-term charts still show a well-established bearish trend which could reassert itself when the initial excitement wears off.
Nevertheless, there has been strong buying, with the price blasting past two key resistance levels which have probably now flipped to become support. There is an obvious resistance level at 103.57 which has held so far and if it continues to do so, we might well see a fall back down to at least 102.50. Unfortunately it feels too early to take a short here just yet
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There is nothing due today concerning either the JPY or the USD.