USD/JPY Signal Update
Yesterday’s signals produced a losing long trade following the bullish pin candle on the H1 chart rejecting the anticipated support level at 104.81.
Today’s USD/JPY Signals
Risk 0.75%
Trades may only be entered between 8am New York time and 5pm Tokyo time over the next 24 hours.
Short Trade 1
Go short following a bearish price action reversal on the H1 time frame immediately upon the next touch of 104.81.
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.
Take off 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
Go long following a bullish price action reversal on the H1 time frame immediately upon the next touch of 103.89.
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.
Take off 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
During the Asian session the Japanese Finance Minister made comments which have led markets to expect there will be less Yen stimulus than had been previously thought. This pair was poised to fall already having broken down past a trend line and having also made a lower high under the psychologically key 107.50 level, but these comments sent the pair really tumbling over the edge. The fall looks to have been finally halted, for now, at the round number below of 104.00. There was a support level that was met and provided a bump on the way down, at 104.81. This could now act as resistance if it is retested from below.
Sentiment is bearish and the long-term bearish trend is back in swing.
There is nothing due today concerning the JPY. Regarding the USD, there will be a release of CB Consumer Confidence data at 3pm London time.