USD/JPY Signal Update
Yesterday’s signals were not triggered as there was no bullish action at 117.00.
Today’s USD/JPY Signals
Risk 0.75%.
Trades must be taken from 8am New York time until 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 116.00.
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 ride.
Short Trade 1
Short entry following a bearish price action reversal on the H1 time frame immediately upon the next touch of 117.00.
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 ride.
USD/JPY Analysis
The Bank of Japan has been painting a rosy future for the Japanese economy and the market has bought it, and this has led to a strong rise in favour of the Yen, particularly against the U.S. Dollar which has fallen almost everywhere.
This move has seen a break below medium-term support at 117.00 and a test of the next level I identified, at 116.27.
The long-term trend is strongly bullish, but this pair has acted in a very volatile way for quite a long time so nothing would be surprising. Having said that, the odds suggest 116.00 should hold for a while.
There is nothing due today regarding the JPY. Concerning the USD, there will be a release of Unemployment Claims data at 1:30pm London time, followed by Crude Oil Inventories data at 4pm.