USD/JPY Signal Update
Yesterday’s signals expired without being triggered as there was no bullish price action at 123.40.
Today’s USD/JPY Signals
Risk 0.75%
Trades may only be taken between 8am and 5pm New York time only, and then after 8am Tokyo time later.
Long Trade 1
Long entry following a bullish price action reversal on the H1 time frame immediately upon the next touch of 121.77.
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.
Remove 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 2
Long entry following a bullish price action reversal on the H1 time frame immediately upon the next touch of 121.47.
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.
Remove 50% of the position as profit when the trade is 20 pips in profit and leave the remainder of the position to ride.
Short Trade 1
Short entry following a bearish price action reversal on the H4 time frame immediately upon the next touch of 123.50.
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.
Remove 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
The detailed and careful analysis I made of possible moves up in this pair yesterday has been rendered irrelevant by this pair coming down to earth with a real bump late in the Tokyo session, as the Bank of Japan talk’s up the Yen and the recent Japanese economic data, which has been largely better than the market expected. With that we have broken down below a long-term supportive trend line, which now sits above and seems to be confluent with probably horizontal resistance at 123.50. Therefore a pull back to that area should provide a good opportunity to go short, as the USD retreats across the board.
There is older support below beginning at 121.77, but the round number at 122.00, which had been a long-term high, could also kick in before that to provide a good buying opportunity.
There are no high-impact events scheduled today for the USD or the JPY.