USD/JPY Signal Update
Yesterday’s signal to go long at a bullish retest of the broken bearish trend line was triggered. Look to take profit at around 119.00.
Today’s USD/JPY Signal
Risk 0.75%
Trades may only be entered between 8am London time and 5pm New York time; and then from 8am Tokyo time.
Long Trade 1
Go long at bullish price action on the H1 time frame immediately following the next touch of 117.03.
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 run.
USD/JPY Analysis
I wrote yesterday that there could still be a good long opportunity off a retest of the broken bearish trend line that had held the price during most of last week, and this opportunity arrived yesterday at the end of the London session when the trend line was retested and held to the pip! The price action formed a bullish engulfing candle on the H1 time frame, which broke very quickly, and then took off later after a pull-back. At the time of writing, the price is perhaps 20 pips away from 119.00, where it might meet local resistance, so be wary of any turns around this area.
I do not see any really good opportunities to enter new trades today with this pair, except for perhaps some short scalping off any resistance at 119.00.
There are no high-impact data releases scheduled today that will directly affect either the USD or the JPY. Therefore it is quite likely to be a relatively quiet day for this pair.