USD/JPY Signal Update
Yesterday’s signals were not triggered as none of the key levels were yet reached.
Today’s USD/JPY Signals
Risk 0.75%
Trades may only be entered from 8am New York time until 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 100.00 or 99.50.
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 101.27, 101.50 or 102.60.
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
The price is now consolidating within a relatively short-term triangle. It feels as if a break up and move to at least 101.27 is coming next, more likely than not. I would not look to trade the triangle’s trend lines.
There is a lot of buying around 100.00 although there is a long-term bearish trend. However, if the price is squeezed and pushed up above 102.75, in my view, the trend comes to an end.
For the time being the trend is still in force, but it does seem to be flattening.
Concerning the USD, there will be a release of Core Durable Goods Orders at 1:30pm London time followed by testimony from the Chair of the Federal Reserve before Congress at 3pm and Crude Oil Inventories data at 3:30pm. Regarding the JPY, the Governor of the Bank of Japan will be speaking at 7:35am.