USD/JPY Signal Update
Last Monday’s signals were not triggered.
Today’s USD/JPY Signals
Risk 0.50%
Trades must be entered between 8am New York time and 5pm Tokyo time only.
Short Trades
Short entry following a bearish price action reversal on the H1 time frame immediately upon the next touch of 110.75, 111.05, 111.81 or 112.21.
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.
Long Trade 1
Long entry following a bullish price action reversal on the H1 time frame immediately upon the next touch of 110.00.
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.
USD/JPY Analysis
The strong downwards move over the last few days, which was driven mostly by a flow into the Japanese Yen, was finally halted – at least temporarily – at the key psychological supportive level at 110.00. It is quite possible that there will be a stronger pullback from here, maybe after another touch of 110.00. There are also several key flipped levels above. It is almost certain that the FOMC release later will provide enough volatility to spike the price up to one or more of these levels and provide some good entry opportunities. The most probable set-up before the release – if any – would be a short trade off 110.75.
Regarding the USD, there will be a release of Crude Oil Inventories data at 3:30pm London time, followed by the FOMC Meeting Minutes at 7pm. Concerning the JPY, the Governor of the Bank of Japan will be speaking at 1:30am.