USD/JPY Signal Update
Yesterday’s signals were not triggered as the bullish bin bar rejecting the support level identified at 103.33 formed before the New York Open.
Today’s USD/JPY Signals
Risk 0.75%
Trades may only be entered from 8am New York time until 5pm Tokyo time, over the next 24-hour period.
Long Trades
Go long following a bullish price action reversal on the H1 time frame immediately upon the next touch of 103.49, 103.33 or 103.16.
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.
Remove 50% of the position as profit when the trade is 20 pips in profit and leave the remainder of the position to run.
Short Trade 1
Go short following a bearish price action reversal on the H1 time frame immediately upon the next touch of the bearish trend line currently sitting at about 103.94.
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.
Remove 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
There has been no real change over the past 24 hours to the big picture. The bearish trend line regime remains in force. We had a brief break below the major support level identified yesterday at 103.33 but there has been some buying down there and we now have three levels below 103.50 to use.
A short trade would be most interesting if there is a simultaneous rejection of the round number at 104.00 and the bearish trend line, as well as the level at 103.94.
The longer-term picture looks to be one of consolidative, slightly choppy swings between about 102.00 and 106.00.
Concerning the USD, there will be a release of Philly Fed Manufacturing Index and Unemployment Claims data at 1:30pm London time. Regarding the JPY, the Governor of the Bank of Japan will be speaking at a summit during Tokyo business hours.