USD/JPY Signal Update
Last Thursday’s signals expired without being triggered.
Today’s USD/JPY Signal
Risk 0.50%
Entries may be made either before 5pm today New York time, or between 8am Tokyo time and 8am London time tomorrow (Friday).
Long Trade 1
Go long following confirming bullish price action on the H1 chart after a first touch of the long-term bullish trend line currently at around 101.41.
Place a stop loss 1 pip below the local swing low.
Move the stop loss to break even when the price reaches 101.63.
Remove 25% of the position as profit at 101.63, then 50% of the original position size at 102.00, and then leave the remainder of the position to ride.
Short Trade 1
Go short following confirming bearish price action on the H1 chart after a first touch of 102.18.
Place a stop loss 1 pip above the local swing high.
Move the stop loss to break even when the price reaches 102.04.
Remove 50% of the position as profit at 101.90, and then leave the remainder of the position to ride.
USD/JPY Analysis
The pair has been very quiet and the real action during the past few days has definitely been elsewhere.
The price has been bouncing off the inner bullish trend line but has yet to touch the lower, very long-term bullish trend line on the shorter time frame charts such as H1. At the time of writing this trend line stands at approximately 101.41. We can still expect a bullish bump off of this line but as action is narrow and choppy I would want to see that confirmed first by bullish price action before entering.
The flipped support to resistance at around 102.00 looks quite muddied now, so I would look to wait until 102.18 is reached before going short, although I would also want to see that confirmed by bearish price action first.
A daily close below 101.29 would be very significant for this pair and could signal a decisively bearish trend.
There is no high-impact news due today concerning either the GBP or the USD. It is likely to be a quiet day.