USD/JPY Signal Update
Yesterday’s signal was not triggered as the price never quite reached the bearish trend line identified as a key resistance level.
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 a bearish price action reversal on the H1 time frame immediately upon the first retest of the bearish trend line currently located at around 120.26.
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.
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 while this pair should remain a long-term buy, and it is nice to be position for the eventual strong upside move when it comes, it might not come in quite a while and there is likely to be movement both up and down in the near future.
Yesterday we rose up quite close to the bearish trend line before falling back down to the support at around 119.50, so the levels I had identified are being respected, as is normal before a major news release (the NFP on Friday).
The support at 119.50 is now in danger of being broken down. There is not much support below that for about a hundred pips or so.
The only “levels” trade worth seeking today would be a short off a return to the bearish trend line.
There are no high-impact events scheduled today concerning the JPY, but there is regarding the USD. At 1:30pm London time, there will be releases of Trade Balance and Unemployment Claims data.