USD/JPY Signal Update
Yesterday’s signal expired without being triggered as the price never reached 119.94.
Today’s USD/JPY Signal
Risk 0.75%
Trades must be made 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 touch of the bearish trend line above, currently sitting at about 118.30.
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.
USD/JPY Analysis
During the Asian session that has just ended, we made another move down to the likely support that I had previously identified at 116.82, with the bounce beginning just a few pips short of that level. The level was already a little exhausted and now I would see it as even less reliable, especially as the price action is suggesting that a move down is coming.
Currently there are probably several supportive areas between 116.82 and 116.00. However it would be most reliable to wait for another touch of the long-0term bullish lower triangle trend line which is currently sitting within this zone, before taking a long if there is bullish price action straight away.
If there is another move up and a bearish bounce off the lower bearish trend line that was previously part of the narrow triangle, then a short could be taken off that.
We are too far away from the other key levels to worry about them.
There are no high-impact data releases scheduled today concerning either the USD or the JPY. Therefore it is quite likely to be a relatively quiet day for this pair.