USD/JPY Signal Update
Last Thursday’s signals were not triggered as there was no bearish price action at 103.94.
Today’s USD/JPY Signals
Risk 0.75%
Trades must be taken between 8am New York time and 5pm Tokyo time, during the next 24-hour period only.
Long Trades
Long entry following a bullish price action reversal on the H1 time frame immediately upon the next entry into the zone between 104.20 and 104.12.
Place the stop loss 1 pip below the local swing low.
Adjust the stop loss to break even once the trade is 20 pips in profit.
Take off 50% of the position as profit when the trade is 20 pips in profit and leave the remainder of the position to ride.
Short Trade 1
Short entry following a bearish price action reversal on the H1 time frame immediately upon the next touch of 104.50.
Place the stop loss 1 pip above the local swing high.
Adjust the stop loss to break even once the trade is 20 pips in profit.
Take off 50% of the position as profit when the trade is 20 pips in profit and leave the remainder of the position to ride.
USD/JPY Analysis
The USD is quite bullish at the current time, and recent days have seen a bullish channel begin to form. There was a zone of resistance which has now flipped to become a zone of support just above 104.00. The channel appears to be capped by the resistance level at 104.50 which might well hold.
A pull back to the supportive area in a few hours when it is confluent with the lower channel trend line could be a great opportunity to search for a long trade entry.
The longer-term picture looks to be one of consolidative, slightly choppy swings between about 102.00 and 106.00.
There is nothing due today regarding the JPY. Concerning the USD, there will be a release of CB Consumer Confidence data at 3pm London time.