USD/JPY Signal Update
Yesterday’s signals were not triggered and expired as the price never reached either 119.94 or the broken trend line below the current price that was shown in yesterday’s chart.
Today’s USD/JPY Signal
Risk 0.75%
Trades may only be taken between 8am London time and 5pm New York time only, or after 8am Tokyo time later.
Short Trade 1
Short entry following some bearish price action on the H1 time frame immediately upon the first touch of 119.94.
Place 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.
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.
Long Trade 1
Long entry following some bullish price action on the H1 time frame immediately upon the first retest of the broken bearish trend line shown on the chart below the current price. The trend line is currently sitting at around 118.10. It will be even better if there is also a touch at the same time of 118.00.
Place 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.
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 wrote yesterday that the earlier touch of the trend line above may hold and it has. The price fell yesterday before rising again, although it did not hit the anticipated support at the lower trend line.
It seems we will have new support confluent with the whole number at 118.00. This suggests the next move will be upwards but we may have to go down for a bounce off 118.00 and the trend line to pick up enough fuel to break out past the resistant trend line above which currently sits at around 118.10.
There are no high-impact data releases scheduled for later today concerning either the JPY or the USD. Wednesday is a public holiday in Japan. Therefore it is likely to be a very quiet day for this pair, unless there is unforeseen news.