USD/JPY Signal Update
Last Wednesday’s signals expired without being triggered as the price did not reach any of the trigger levels that day.
Today’s USD/JPY Signal
Long Trade 1
Long entry following bullish price action on the H1 time frame after a first touch of 107.00.
Put the stop loss 1 pip below the local swing low.
Move the stop loss to break even when 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 ensuring there is no risk left in the trade.
Short Trade 1
Short entry following bearish price action on the H1 time frame after a first touch of 108.00.
Put the stop loss 1 pip above the local swing high.
Move the stop loss to break even when 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 ensuring there is no risk left in the trade.
USD/JPY Analysis
A little surprisingly, the strengthening of the JPY continued right up until the end of last week, and this pair closed hard by its weekly low. I had expected 107.38 to be supportive, but support and resistance levels are often a little fluid with the JPY. As we can expect low volatility today, a look at the chart shows two levels of flipped support and resistance that are a little soft but should be OK to trade today in these conditions. These levels are confluent with the closest round numbers: likely support at 107.00 and likely resistance at 108.00. Be cautious over 107.00 as we have already reached very close to that level this morning.
It is statistically probable that this week should see at least a small move up from the weekly open, but do remember that this only has to happen over five days.
There are no high-impact data releases concerning either the JPY or the USD scheduled for today’s London session. It is a public holiday in both the U.S.A. and Japan today. For these reasons it is likely to be a very quiet day today for this pair.