USD/JPY Signal Update
Last Thursday’s signals were not triggered and expired.
Today’s USD/JPY Signals
Risk 0.50%
Trades must be entered between 8am New York time and 5pm Tokyo time.
Long Trade 1
* Go long following a bullish price action reversal on the H1 time frame immediately upon the next touch of 116.09.
* Place 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.
* 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
* Go long following a bullish price action reversal on the H1 time frame immediately upon the next touch of 115.54.
* Place 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.
* 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
* Go short following a bearish price action reversal on the H1 time frame immediately upon the next touch of 118.36.
* Place 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.
* 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 2
* Go short following a bearish price action reversal on the H1 time frame immediately upon the next touch of 118.78.
* Place 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.
* 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
I had identified a probable support level at 116.82 last week, and this level was actually hit and slightly breached on Friday. Although this week’s opening price was a little bit below it, we have moved up with there and so I think this area is still proving to be supportive. However it is a little hard to gauge and I would not be looking for a buy if we get back there any time soon. Instead I would prefer to wait for the probable support just above the round number at 116.00.
We may currently be bumping up against local resistance at around 117.40 so if we do fall from here it would not be very surprising, although it is probably going to be a think market today so be more careful than usual.
The higher resistance beginning at around 118.36 looks very strong and if we get back there it could easily provide the high price of this week.
There is nothing due today concerning the JPY. Regarding the USD, it is a public holiday in the USA today.