USD/JPY Signal Update
Yesterday’s signals were not triggered as none of the key levels were ever 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 Trade 1
Go long following a bullish price action reversal on the H1 time frame immediately upon the next touch of 108.56.
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 entry into the zone between 110.42 and 110.60.
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
Although there are some initial signs of the strong bullish movement beginning to slow down, the hourly chart below shows support levels are clearly defined and holding, with the price getting to within a few pips of a previous key high before taking off again a few hours ago. The test now will be whether it can go on and make a new high.
This is the second most bullish of the non-exotic Forex pairs in a bullish USD Forex market, so this is where the heart of the action still is.
There is no obvious resistance before 110.42, although the big round number at 110.00 might see some profit taking which could stall the advance.
There is nothing due today regarding the JPY. Concerning the USD, there will be a release of Building Permits, CPI, Unemployment Claims and Philly Fed Manufacturing Index data at 1:30pm London time, followed by the Chair of the Federal Reserve testifying before Congress about the economic outlook later at 3pm.