USD/JPY Signal Update
Last Thursday’s signals expired without being triggered as the price never reached either of the key levels.
Today’s USD/JPY Signal
Risk 0.75%
Trades must be entered before 5pm New York time.
Long Trade 1
Long entry following bullish price action on the H1 time frame immediately after the price first reaches 117.75.
Place the stop loss 1 pip below the local swing low.
Move the stop loss to break even once the trade is 25 pips in profit.
Take off 50% of the position as profit when the trade is 25 pips in profit and leave the remainder of the position to ride.
Short Trade 1
Short entry following bearish price action on the H1 time frame immediately after the price first reaches 120.19.
Place the stop loss 1 pip above the local swing high.
Move the stop loss to break even once the trade is 25 pips in profit.
Take off 50% of the position as profit when the trade is 25 pips in profit and leave the remainder of the position to ride.
USD/JPY Analysis
This pair has held up quite bullishly since breaking up past local resistance at around 119.00. We are now not very far away from an area at around 120.00 that is likely to be resistant, and if reached later today it might provide an opportunity for a short trade. However due to the holiday in Japan tomorrow and the upcoming Christmas shutdown, there may not be enough time for that unless it happens very quickly today. My colleague Christopher Lewis also doubts that we will be able to break above 120.00 this week.
There are no high-impact data releases scheduled today directly concerning either the USD or the JPY. It is likely to be a quiet day for this pair, and tomorrow is a public holiday in Japan.