USD/JPY Signal Update
Yesterday’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 Trade 1
Go short following a bearish price action reversal on the H1 time frame immediately upon the next touch of 102.16.
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.
Long Trades
Go long following a bullish price action reversal on the H1 time frame immediately upon the next touch of 100.50 or 100.00.
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 yesterday that the truly key level is 100.50 and although we have had another strong downwards move over the past 24 hours, the level so far has held, and we see support beginning to kick in whenever the price gets close to it.
We also see minor resistance developing at around 101.20.
This pair is usually strongly affected by the FOMC Meeting Minutes and this month’s release will occur tonight. It seems likely that the price will consolidate before the release between 100.50 and 101.20.
Once the release is made, anything can happen, although there should be more potential to the downside (in the event of dovish minutes) than the upside (in the event of hawkish minutes).
Regarding the USD, there will be a release of ISM Non-Manufacturing PMI data at 3pm London time followed by the FOMC Meeting Minutes at 7pm. Concerning the JPY, the Governor of the Bank of Japan will be speaking at a Branch Managers meeting at 1:30am.