USD/JPY Signal Update
Last Thursday’s signals were not triggered and expired.
Today’s USD/JPY Signals
Risk 0.75%
Trades may be entered between 8am New York time and 5pm Tokyo time only.
Short Trades
Go short following a bearish price action reversal on the H1 time frame immediately upon the next touch of 107.50 or 108.20.
Put the stop loss 1 pip above the local swing high.
Move the stop loss to break even once the trade is 20 pips in profit.
Take off 50% of the position as profit when the trade is 20 pips in profit and leave the remainder of the position to run.
Long Trades
Go long following a bullish price action reversal on the H1 time frame immediately upon the next touch of 106.50 or 105.54.
Put the stop loss 1 pip below the local swing low.
Move the stop loss to break even once the trade is 20 pips in profit.
Take off 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
I wrote last Thursday that “Should the forthcoming USD high-impact data due later today and tomorrow be poorer than expected, we can expect this pair to fall even further. There are no key levels before 108.20 so that would be a natural target.
Note that the price is below its levels of 3 and 6 months ago which is a strong sign of a good long-term bearish trend.”
This has turned out to be good advice and in fact the price has gone even further than that, bouncing off the support level at 106.50 shortly after today’s weekly open.
The price is now pulling back but this pair is looking extremely attractive to short as it has both sentiment in its favour, and is the most strongly trending in both the long and short term of all Forex pairs.
A pullback to 107.50 should be very easy to short, but the turn might happen a few pips before that as such a turn will probably be very widely anticipated.
There is nothing due today concerning the JPY. Regarding the USD, the Chair of the Federal Reserve will be speaking at 5:30pm London time.