USD/JPY Signal Update
Last Thursday’s signals gave a moderately profitable short trade following the bearish rejection of the resistance level at 102.60, marked in the chart below with a red down arrow.
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 101.72 or 101.27.
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 102.60 or 102.75.
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
This pair remains within a long-term bearish trend, providing good short trade opportunities every now and then.
However, it is becoming obvious that the trend may be running out of steam, with some impulsive bullish moves happening when the price gets down into the area close to 100.00. The price has not made a new low for many weeks.
The price is narrowing at the moment and may well remain that was until the FOMC releases on Wednesday. If the releases are bullish for the USD, we may see the end of this long-term bearish trend completely.
There is nothing due today concerning either the JPY or the USD. It is a public holiday in Japan.