USD/JPY Signal Update
Last Thursday’s signals expired without being triggered as none of the key levels were hit.
Today’s USD/JPY Signal
Risk 0.75%
Trades may only be taken between 8am London time and 5pm New York time only, or after 8am Tokyo time later.
Short Trade 1
Go short following some bearish price action on the H1 time frame immediately upon the first test of the long-term bearish trend line currently sitting at around 120.08.
Put the stop loss 1 pip above the local swing high.
Adjust the stop loss to break even once 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 run.
Long Trade 1
Go long following some bullish price action on the H1 time frame immediately upon the first test of the inner bullish trend line currently sitting at around 118.81.
Put the stop loss 1 pip below the local swing low.
Adjust the stop loss to break even once 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 run.
USD/JPY Analysis
This pair rose with the strengthening of the USD at the end of last week. However no key levels or trend lines have been hit so it is hard to judge the relative strength of weakness of the JPY in order to judge whether this is a good pair to be trading right now.
We can draw another supportive trend line below.
Either trend line will be hit before any good flipped support or resistance, so the behaviour of the price at either trend line should be the first clue regarding medium-term direction. Meanwhile we can look for reversals off the trend lines, but be careful.
There are no high-impact events scheduled for the JPY today. Regarding the USD, at 3pm London time there will be a release of U.S. ISM Manufacturing PMI data.