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 Trade 1
Long entry following a bullish price action reversal on the H1 time frame immediately upon the next touch of 104.38.
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 105.51.
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
We now have a bullish channel that has become established over a period close to two weeks. Although this week opened just below the supportive trend line shown in the chart below, the price quickly rose and is currently testing the round number at 105.00. The resistance at 105.51 is strong as we discovered last Friday. It now looks as if the price is going to move above 105.00 but will start to struggle as it gets any closer to 105.51. I doubt that price is going to be hit over the coming session but of course things can get volatile as we approach the Japan releases that will take place during the next Asian session.
There is nothing due today regarding the USD. Concerning the JPY, the Bank of Japan will be releasing its monthly Outlook Report, Monetary Policy Statement and Policy Rate.