USD/JPY Signal Update
Yesterday’s signals might have produced a losing short trade following the bullish pin bar rejection of the support level identified at 103.16.
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 102.61 or 101.77.
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 103.17 or 103.48.
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
I thought yesterday that the price would begin to stabilize above 103.00 due to the confluence of three support levels clustered in that area, but instead this pair fell strongly and was one of the biggest movers of the day as the Yen finally began to meaningfully strengthen.
The momentum suggests a further fall as the USD remains weak, but there are initial signs that the support at 102.61 may hold.
There is nothing due today regarding the JPY. Concerning the USD, there will be a release of Unemployment Claims data at 12:30pm London time followed by ISM Non-Manufacturing PMI at 2pm.