USD/JPY Signal Update
There are no outstanding signals for this pair.
Today’s USD/JPY Signal
Short Trade 1
Go long following bearish price action on the H1 time frame after the first touch of 100.88.
Place a stop loss 1 pip below the local swing low.
Move the stop loss to break even when the price reaches 101.18.
Remove 50% of the position as profit at 101.50 and leave the remainder of the position to ride.
USD/JPY Analysis
We had a very messy bearish breakout of the triangle that was coming to a close last week. The JPY has been strengthening moderately across the board. This morning we approached the zone beginning with a long-term 50% Fibonacci retracement at 101.18 that has been supportive for the past several months. Below that, there is the broken bearish trend line that has still not been retested, and it is very confluent today with the supportive zone starting at 100.88. When this zone was last tested, it produced a fairly large upwards move.
The overall picture suggests there should be a long opportunity if the price gets lower. It might be that we already had this reversal earlier today as the final stage of the Tokyo session saw a reversal with bullish price action.
Above us the broken lower triangle trend line may prove to be resistant if tested. Much further above, there is flipped resistance at 102.21.
There are no high-impact news releases scheduled today that are likely to directly affect the JPY. Later at 3pm London time there will be a release of US Pending Homes Sales data, which may affect the USD.