USD/JPY Signal Update
Yesterday’s signals expired without being triggered.
Today’s USD/JPY Signal
Entry before 8am tomorrow (Thursday) London time.
Short Trade 1
Go short with a limit sell order at the first touch of the 103.00 level.
Put the stop loss at 103.32...
Move the stop loss to break even when the price reaches 102.50.
Take 50% of the position as profit at 102.35 and leave the remainder to run.
Long Trade 1
Go long with a limit buy order at the first touch of the 100.88 level.
Put the stop loss at 100.38.
Move the stop loss to break even when the price reaches 101.10.
Take 50% of the position as profit at 102.00 and leave the remainder to run.
There has been a strong drop in the USD over the past few days which have moved the focus away from the JPY. However this drop has certainly been felt strongly within this pair and technically the long-term upwards trend can now be called into question, although we are still within the recent range. However we are approaching a 3-month low which is significant.
There is a very interesting level below us that may well provide key support if this downwards moves is going to halt or reverse. The level of 100.88 is today confluent with a long-term bullish trend line (which has held since June last year), recent support, and a crucial historic swing high from a few months ago. The area down to about 100.50 has proved supportive. Therefore as we are currently about 90 pips away from there at the time of writing, I am prepared to take a long touch trade there without any confirmation.
Before we can reach 100.88, we will have to break an inner trend line which is at about 101.50 and confluent with recent lows. I am not so confident this will hold, but if we do not have a down day today, this could be the low of the day or close to it.
The pair still looks weak and I expect a further fall before any upwards recovery.
Above us there are good selling levels at 102.00 and 103.00. Only 102.00 is close enough to be of concern. Even if we somehow get all the way up there today, it should give a bounce down.
There are no high-impact news releases due today concerning the JPY. Regarding the USD at 1:30pm London time there is the release of US Unemployment Claims data. Today is likely to be quieter than the past few days.