USD/JPY Signal Update
Yesterday’s signals expired without being triggered.
Today’s USD/JPY Signal
Risk 0.75%
Entries may be made either before 5pm today New York time, or between 8am Tokyo time and 8am London time tomorrow (Friday).
Long Trade 1
Long entry following confirming bullish price action on the H1 chart after a first touch of 101.91.
Put a stop loss 1 pip below the local swing low.
Adjust the stop loss to break even when the price reaches 102.20.
Take off 75% of the position as profit at 102.40, then the remainder at 103.00.
Long Trade 2
Long entry following confirming bullish price action on the H1 chart after a first touch of the bullish trend line, currently at 101.43.
Put a stop loss 1 pip below the local swing low.
Adjust the stop loss to break even when the price reaches 101.88.
Take off 50% of the position as profit at 101.88, then half of the remainder at 102.40.
Close the trade at 103.00.
Short Trade 1
Short entry following confirming bearish price action on the H1 chart after a first touch of 103.00.
Put a stop loss 1 pip above the local swing high.
Adjust the stop loss to break even when the price reaches 102.73.
Remove 25% of the position as profit at 102.73, then 50% of the original position size at 102.45, and then leave the remainder of the position to run.
USD/JPY Analysis
Yesterday was again a very quiet day and the price just went sideways. Today may see more volatility. Be aware that the JPY is becoming very “waterlogged” and flat and may change from being the most exciting currency to trade to the most boring. However we do still have a slight upwards trend and a bullish bias with this pair.
Yesterday the likely support level at 102.35 was broken. We have more levels and also a trend line which may come into play today. The trend line at 101.43 goes all the way back to May 2013 and has held for almost a year, so it is likely to provide a good long opportunity. We also have a flipped support level exactly at a pivot point at 101.91.
In spite of all this, the price is likely to be driven by news today shortly after the New York Open, so we could see a strong drive then in any direction. Any trade today should be confirmed by price action on the H1 chart.
There are no high-impact news releases due today concerning the JPY. At 1:30pm two items of important US data will be released: Core Durable Goods Orders and Unemployment Claims. Therefore this pair will probably be quiet until the New York Open.