USD/JPY Signal Update
Yesterday’s signals were not triggered as the major bullish reversal took place just two pips above the anticipated support at 106.50.
Today’s USD/JPY Signals
Risk 0.75%
Trades must be taken from 8am New York time until 5pm Tokyo time only.
Short Trade 1
Short entry following a bearish price action reversal on the H1 time frame immediately upon the next touch of 107.20.
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.
Long Trade 1
Long entry following a bullish price action reversal on the H1 time frame immediately upon the next touch of 105.44.
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
I wrote yesterday that this pair is in a strong downwards trend but might pull back today. That is more or less what happened, with the anticipated support level at 106.50 producing a bullish pullback that turned just a couple of pips above the level.
This is probably the most attractive currency pair to trade right now, as it is in a strong and clear bearish trend. It does not look as if the level at 106.50 is going to hold so the next probably support is at 105.44 which is just below the 18 month low price.
There is new flipped resistance above, at 107.20. A pullback to that price would look very attractive to short.
There is nothing due today concerning the JPY. Regarding the USD, there will be a release of Unemployment Claims data at 1:30pm London time.