USD/JPY Signal Update
Yesterday’s signals were not triggered as there was no bearish price action at 1.2404.
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
Go long following a bullish price action reversal on the H1 time frame immediately upon the next touch of 121.77.
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 run.
Long Trade 2
Go long following a bullish price action reversal on the H1 time frame immediately upon the next touch of 121.77.
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 run.
Short Trade 1
Go short following a bearish price action reversal on the H1 time frame immediately upon the next touch of 124.20.
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.
Take off 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
I was wrong yesterday in expecting that the 124.00 level would act as resistance before the FOMC release. The price actually went past it, but the USD-negative FOMC releases then pushed the price down fairly strongly. The level at 124.00 turned out to be more of a zone and I would now look for a return to 124.20 or thereabouts before looking for a short.
This is not marked on the chart but there is a double bottom at 122.50 that might prove to be supportive.
There is big JPY news coming later during the Tokyo session that might push the price around a lot.
There are high-impact events scheduled today for both the USD and the JPY. Regarding the USD, there will be CPI and Unemployment Claims data at 1:30pm London time followed by the Philly Fed Manufacturing Index later at 3pm. Concerning the JPY, the Bank of Japan will be releasing its Monetary Policy Statement late in the Tokyo session accompanies by the usual Press Conference.