USD/JPY Signal Update
Yesterday’s signals were not triggered, as we had some hourly closes below the support level identified at 117.52 during the late part of the Asian session.
Today’s USD/JPY Signals
Risk 0.75%
Trades must be taken from 8am New York time until 5pm Tokyo time only, during the next 24-hour period.
Long Trades
* Long entry following a bullish price action reversal on the H1 time frame immediately upon the next touch of 117.00 or 116.28.
* Put the stop loss 1 pip below the local swing low.
* Move the stop loss to break even once the trade is 20 pips in profit.
* Remove 50% of the position as profit when the trade is 20 pips in profit and leave the remainder of the position to run.
Short Trades
* Short entry following a bearish price action reversal on the H1 time frame immediately upon the next touch of 118.77 or 119.12.
* Put the stop loss 1 pip above the local swing high.
* Move the stop loss to break even once the trade is 20 pips in profit.
* Remove 50% of the position as profit when the trade is 20 pips in profit and leave the remainder of the position to run.
USD/JPY Analysis
I was premature yesterday in seeing the resistance just above 118.00 as being broken, and expecting a continued move up to the next resistance level and possibly new multi-month highs as well. The price seems to have topped out above 118.00 and is only being held up by the support at 117.40. I would not look for a long however until 117.00 is reached.
The outlook remains bullish over the long term.
There is nothing due today regarding the JPY. Concerning the USD, there will be a release of Crude Oil Inventories data at 3:30pm London time.