USD/JPY Signal Update
Last Thursday’s signals were not triggered as none of the key levels were reached that day.
Today’s USD/JPY Signals
Risk 0.75%
Trades must be entered between 8am New York time and 5pm Tokyo time, over the next 24 hours only.
Short Trade 1
Short entry following a bearish price action reversal on the H1 time frame immediately upon the next touch of 102.83.
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 Trade 1
Long entry following a bullish price action reversal on the H1 time frame immediately upon the next touch of 100.93.
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 finally had a breakout from the ever-tightening range with Yellen’s hawkish comments on Friday, and there was a very strong upwards break, with this pair being the biggest gainer of the day. The bullishness persisted after Tokyo opened for this week, but has run out of steam around the Tokyo close, and may have topped -= at least for the time being – above the identified resistance level of 102.25.
It is dangerous to short just yet even though we have reached a zone that can be expected to act as resistance as the upwards move was so strong and fast. A key lower high and a fall with momentum below 102.00 would make a more meaningful move down from here more likely. Alternatively, the New York session may see the price rise to 102.50 or even beyond.
There is nothing due today concerning either the JPY or the USD.