USD/JPY Signal Update
Last Thursday’s signals were not triggered as there was no bullish price action at 103.89.
Today’s USD/JPY Signals
Risk 0.75%
Trades must be taken from 8am New York time until 5pm Tokyo time over 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 102.89 or 103.96.
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 101.46 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
We had a strong downwards move in this pair over the course of last week, as the USD disappointed with poor economic data, and the JPY began to strengthen somewhat after it became clear that the easing was not going to be as drastic as the market had first thought.
We have some fairly clear levels above that are likely to act as resistance following any pull backs over the near term. The area around 104.00 stands out.
Below we have a key support level at 101.46 and below that a really psychologically significant number at 100.00.
This pair is in a strong, long-term bearish trend, so there are good opportunities here to trade with that trend for maximum benefit.
There is nothing highly important due today concerning the JPY. Regarding the USD, there will be a release of ISM Manufacturing PMI data at 3pm London time.