USD/JPY Signal Update
Yesterday’s signals produced a short trade off the resistance level identified at 103.05. I am not confident in this trade which is slightly in profit at the time of writing and if I had this position open I would close it immediately.
Today’s USD/JPY Signals
Risk 0.75%
Trades may only be entered between 8am New York time and 5pm Tokyo time, over the next 24-hour period.
Long Trades
Long entry following a bullish price action reversal on the H1 time frame immediately upon the next touch of 102.42 or 102.08.
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.
Short Trades
Short entry following a bearish price action reversal on the H1 time frame immediately upon the next touch of 103.81.
Put the stop loss 1 pip above the local swing high.
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 “bears will defend 102.08 but a break above that will suggest a retest of 102.60 is on the cards.” This is what happened, in fact the move was surprisingly strong but may have peaked at the resistance level associated with the previous swing high at 103.05. I am not confident though that we have seen the peak yet.
There is still a long-term bearish trend in force, but we have not made a new low for several weeks, and we do get persistent buying the closer the price gets to 100.00.
There is nothing due today concerning the JPY. Regarding the USD, there will be a release of Crude Oil Inventories data at 3:30pm London time.