USD/JPY Signal Update
Yesterday’s signals were not triggered.
Today’s USD/JPY Signals
Risk 0.75%
Trades must be entered from 8am New York time to 5pm Tokyo time only.
Short Trade 1
* Go short following a bearish price action reversal on the H1 time frame immediately upon the next touch of 114.50
* Put 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.
* 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 1
* Go long following a bearish price action reversal on the H1 time frame immediately upon the next touch of 112.00.
* Put 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.
* 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
The Bank of Japan’s monthly policy statement yesterday succeeded in producing enough Yen strength over the short-term to push the price down below 113.00 for a short while, but the USD has gathered strength over the past two or three sessions and this has brought the price back up to within sight of 114.00 again, so the consolidation looks to be remaining reliable despite the long-term bearish trend. The chart below shows how the triangle trend lines can be redrawn to show that a triangle is still holding.
There is nothing important due today concerning the JPY. Regarding the USD, there will be a release of Building Permits and CPI data at 12:30pm London time, followed later by Crude Oil Inventories at 2:30pm and then the FOMC releases commencing at 6pm.