USD/JPY Signal Update
Last Thursday’s signals were not triggered and expired.
Today’s USD/JPY Signals
Risk 0.50%
Trades must be entered between 8am New York time and 5pm Tokyo time only.
Long Trade 1
* Go long following a bullish price action reversal on the H1 time frame immediately upon the next touch of 118.00.
* 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 touch of 119.66.
* 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
I wrote last Thursday that 120.00 looked to be a very pivotal, psychological area, with a break below 119.65 being a very bearish sign. There have been very large moves already as the year opens and we have had this strong downwards break with a significant strengthening in the JPY.
Trading may well be quite dangerous until the market settles down, with stocks plunging and large money flows occurring, but if we reach 118.00 there should be at least a good short-term long trade there. However the bigger picture is the establishment of a long-term bearish trend which can be traded by waiting for pull backs to previous support levels such as 119.66.
There is nothing due today concerning the JPY. Regarding the USD, there will be a release of ISM Manufacturing PMI data at 3pm London time.