By: DailyForex.com
USD/JPY Signal Update
Last Thursday’s signals expired without being triggered as there was no suitable price action at any of the levels that were reached that day.
Today’s USD/JPY Signals
Risk 0.50%
Trades may only be entered from 8am New York time until 5pm Tokyo time.
Long Trade 1
* Go long following a bullish price action reversal on the H1 time frame immediately upon the next entry into the zone between 120.50 and 120.27.
* Place 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 ride.
Short Trade 1
* Go short following a bearish price action reversal on the H1 time frame immediately upon the next entry into the zone between 122.11 and 122.22.
* Place 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 ride.
Short Trade 2
* Go short following a bearish price action reversal on the H1 time frame immediately upon the next touch of 122.79.
* Place 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 ride.
USD/JPY Analysis
The price was moving up quite steadily following the U.S. rate hike last week, but then the Bank of Japan gave its monthly report which had the effect of bringing the price crashing back down before it stabilized just above 121.00, from where it now appears to be moving up again.
The support in the area of 120 does look convincing, but it should be remembered that the JPY has some long-term strength, even against the otherwise strong USD. The signals coming from the Bank of Japan do not support any further weakening of the JPY for the time being, so a ranging scenario between 120.00 and 124 or so is likely to lie ahead for some time.
There is nothing due today concerning either the JPY or the USD.