USD/JPY Signal Update
Yesterday’s signals were not triggered as there was no bearish reversal off the 119.44 level.
Today’s USD/JPY Signal
Risk 0.75%
Trades may only be taken between 8am and 5pm New York time only, or after 8am Tokyo time later.
Long Trade 1
Go long following a bullish price action reversal on the H1 time frame immediately upon the first test of 119.44.
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.
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. Take further profit at 119.89.
Long Trade 2
Go long following a bullish price action reversal on the H1 time frame immediately upon the first test of 119.15.
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.
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. Take further profit at 119.89.
Short Trade 1
Go short 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 119.89.
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. Take further profit at 119.50.
Short Trade 2
Go short following a bearish price action reversal on the H1 time frame immediately upon the first test of 120.60.
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. Take further profit at 119.50.
USD/JPY Analysis
We have seen a fairly strong upwards move in this pair, and we now approach the well-tested bearish trend line that has held for quite some time. This trend line is also fairly confluent right now with the psychologically key 120.00 level. Therefore it could be a good turning point at which to get short.
Below, the previous anticipated resistance at 119.44 has now flipped to support. There is also a likely slip below that at 119.15.
There are no high-impact events scheduled today concerning the USD, but there is regarding the JPY. Late in the forthcoming Tokyo session, the Bank of Japan will be releasing its Monetary Policy Statement.