USD/JPY Signal Update
Yesterday’s signals were not triggered as there was no bullish price action at 101.72.
Today’s USD/JPY Signals
Risk 0.75%
Trades must be taken from 8am New York time until 5pm Tokyo time, during the next 24-hour period only.
Long Trades
Go long following a bullish price action reversal on the H1 time frame immediately upon the next touch of 101.27 or 100.93.
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.
Short Trades
Go short following a bearish price action reversal on the H1 time frame immediately upon the next touch of 102.00 or 102.60.
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.
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
The long-term bearish trend does remain intact, providing good short trade opportunities every now and then.
However, this trend may be running out of steam, with some impulsive bullish moves happening when the price gets down into the area close to 100.00. The price has not made a new low for many weeks. Having said that, one support level has been taken out, and a new lower resistance level has been printed confluent with the round number at 102.00.
It is probable that there will not be any dramatic moves until the FOMC releases on Wednesday. If the releases are bullish for the USD, we may see the end of this long-term bearish trend completely.
Regarding the USD, there will be a release of Building Permits data at 1:30pm London time. Concerning the JPY, the Bank of Japan will release its Monetary Policy Statement followed by the usual press conference at about 5am London time.