USD/JPY Signal Update
Last Thursday’s signals were not triggered as there was no appropriate price action at the times when either of the key levels were reached to signify trade entries.
Today’s USD/JPY Signals
Risk 0.75%
Trades may only be entered from 8am New York time to 5pm Tokyo time, over the next 24-hour period.
Long Trades
Go long following a bullish price action reversal on the H1 time frame immediately upon the next touch of 103.68 or 103.56.
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 Trade 1
Go short following a bearish price action reversal on the H1 time frame immediately upon the next touch of 104.50.
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 USD has been fairly strong over recent days, although it has come off the boil this week. The price has been contained here over the short-term at a bearish descending trend line, shown on the chart below. It is possible to trade off it but I think it is more probable that it will be broken and a retest of 104.50 would be on the cards.
There is plenty of good support below and a dip down to the 103.50 area would be likely to provide a good buying opportunity at least over the short-term.
There is nothing due today regarding the JPY. Concerning the USD, there will be a release of CPI data at 1:30pm London time.