USD/JPY Signal Update
Last Thursday’s Long Trade 2 was almost triggered, but there was unfortunately not really a strong higher low to give an entry.
Today’s USD/JPY Signal
Entries may only be made before 3pm London time or following 8am Tokyo time tomorrow (Tuesday).
Risk 0.75% of equity.
Long Trade 1
Long entry following a strong higher low fairly close to 103.53.
Place a stop loss 1 pip below the local swing low.
Take off 75% of the position when profit is twice risk and leave the remainder to run.
USD/JPY Analysis
In my analysis last Thursday I was looking to go long at around 103.75, which was near-term support within the strong uptrend this pair has been experiencing over the past two weeks or so. As it turned out my analysis was correct, but it was hard to find a strong entry. The price gapped up over the weekend and during the Tokyo session which has just ended, approached close to the weekly high at 104.26. If this high holds, it would seem likely that we will experience a pause in the trend and perhaps a period of consolidation between 103.50 and 104.00.
I am still looking to go long but want to see a pull back to the 103.50 area at least before doing so.
There are no high-impact data releases scheduled for either the EUR or the JPY. Therefore today is likely to be a very quiet day for this pair, especially as today is a public holiday in the U.S.A.