USD/JPY Signal Update
Last Thursday’s signals expired without being triggered as although the price did reach 119.20 and 118.95 there was no bullish price action there.
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
Go short following some bearish price action on the H1 time frame immediately upon the first retest of 119.20.
Put 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.
Remove 50% of the position as profit when the trade is 20 pips in profit and leave the remainder of the position to run.
Long Trade 2
Go long following some bullish price action on the H1 time frame immediately upon the first retest of the broken trend line which is currently sitting at about 118.00 and/or the level at 118.00 itself.
Put 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.
Remove 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
This pair was beginning to show signs or renewed bullishness and making a drive for territory beyond 120.00 again, when a comment from the Bank of Japan that it saw no further stimulus for the Yen sent the pair plummeting as the JPY strengthened. Although it quickly pulled back, that turned out to be just a swing, and the pair continued to move down, muddying the trend line and support. It seems that 119.20 has again become established as resistance. Although the pair now looks bearish, and is well within a long-term range, the confluence of a broken trend line and a supportive whole number at 118.00 is likely to prove to be supportive when next tested.
There are no high-impact data releases scheduled for today concerning either the JPY or the USD. It is a public holiday in the USA. Therefore today is likely to be a very quiet day for this pair.