USD/JPY Signal Update
Yesterday’s signals were not triggered as there was no bearish price action at any of the key resistance levels which were reached.
Today’s USD/JPY Signals
Risk 0.75%
Trades may only be entered from 8am 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 112.59 or 112.00.
* 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
* Go short following a bearish price action reversal on the H1 time frame immediately upon the next touch of 114.00.
* 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 situation here is simply one of extremely strong bullish momentum. The pair has been rising ever since a few hours after the result of the U.S. Presidential election became clear a little over two weeks ago, and in fact has increased in value by more than 10% during that time.
New highs were made yesterday and again during today’s London session.
At the time of writing, the pair is pulling back, but nothing out of the ordinary is happening. The action may quieten down as we go through the day as the U.S. is on holiday, so it will require the Tokyo open to provide more direction.
In this bullishness, key resistance levels are being completely disregarded, and it is dangerous to call a top in these conditions.
There is nothing due today concerning either the JPY or the USD. It is a public holiday today in the U.S.A.