USD/JPY Signal Update
Yesterday’s signals gave an excellent long trade following the touch of and bullish rejection from the 114.77 level. Any trade still open will be strongly in profit and at this stage it seems logical to take further profits if the price falls below 117.18.
Today’s USD/JPY Signals
Risk 0.75%
Trades may only be entered between 8am New York time and 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 117.00.
* 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 Trades
* Go short following a bearish price action reversal on the H1 time frame immediately upon the next entry into the zone between 118.07 and 118.77.
* 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 price was moving gently downwards it hit the support level at 114.77 a little while before the FOMC release, which produced the anticipated rate hike, but more importantly, produced a forecast of higher rates than had been expected for 2017. This sent the USD rising everywhere, and as the JPY has been the weakest currency over the long-term, the move upwards in this pair was very strong.
Two resistance levels were cleanly broken and look to have flipped to become likely support. We have new probable support at 117.00. The price is making new 6-month highs and is generally very bullish.
It looks as if the strong long-term bullish trend is continuing.
There is nothing due today regarding the JPY. Concerning the USD, there will be releases of CPI, Unemployment Claims and Philly Fed Manufacturing Index data at 1:30pm London time.