USD/JPY Signal Update
Yesterday’s signals were not triggered as the key level was never reached.
Today’s USD/JPY Signals
Risk 0.75%
Trades may only be taken from 8am New York time until 5pm Tokyo time, during the next 24-hour period only.
Long Trade 1
Go long following a bullish price action reversal on the H1 time frame immediately upon the next touch of 103.12.
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
We have a very long-term downwards trend, but the past week saw a double bottom made near 100.00 and then a very impulsive and bullish move up eventually slightly exceeding the 104.00 area. The situation is becoming interesting now as the price is showing signs of topping and the chart below suggests some kind of bearish head and shoulders formation may be developing. The key thing to watch out for seems to be a meaningful break below 103.12 which would seem likely to mean the start of a meaningful move down back in line with the long-term bearish trend.
Despite the bearish developments, it should still be noted there is little obvious resistance before 106.00 so there is also room for a return to strong upwards movement. This would most likely be triggered by better than expected U.S. economic data later.
There is nothing due today concerning the JPY. Regarding the USD, there will be a release of ISM Non-Manufacturing PMI data at 3pm London time.