USD/JPY Signal Update
Yesterday’s signals were not triggered as there was no suitable price action when some of the levels were reached.
Today’s USD/JPY Signals
Risk 0.75%
Trades must be entered between 8am New York time and 5pm Tokyo time during the next 24 hours only.
Short Trades
* Short entry following a bearish price action reversal on the H1 time frame immediately upon the next touch of 101.50 or 102.25.
* 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
* Long entry following a bullish price action reversal on the H1 time frame immediately upon the next touch of 100.50, 100.15 or 99.00.
* 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
Yesterday’s comments by a member of the Federal Reserve really turned around the strongly bearish move that had been ongoing, with the pair trading well below the psychologically crucial 100.00 level at one point.
Even though we are well off the highs, the action since that comment is still primarily bullish, and there is possible new support forming at around 100.65 as well as the level flipping back to support from resistance at 100.15.
The FOMC release later will probably be the major catalyst for the next move by this pair, so it is quite possible the price will just chop around until then. A successful major short trade in the meantime is probably unlikely.
There is nothing due today concerning the JPY. Regarding the USD, there will be releases of Crude Oil Inventories at 3:30pm London time followed by the FOMC Meeting Minutes at 7pm.