USD/JPY Signal Update
Yesterday’s signals were not triggered as there was no bullish price action when the price reached any of the anticipated support levels.
Today’s USD/JPY Signals
Risk 0.75%
Trades may only be entered between 8am New York time and 5pm Tokyo time.
Short Trades
Short entry following a bearish price action reversal on the H1 time frame immediately upon the next touch of 104.23, 104.75 or 105.44.
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.
Long Trades
Long entry following a bullish price action reversal on the H1 time frame immediately upon the next touch of 103.10, 102.74, or 102.50.
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.
USD/JPY Analysis
The FOMC releases last night contained no surprises so did not have much of an effect upon this pair. However the Bank of Japan’s Monthly Statement a few hours ago passed on any further stimulus measures, and this had the effect of strengthening the Yen a lot, sending this pair down to new near 2 year lows.
Of course, over the long term, this pair has been in a strong downwards trend anyway for quite a while, which just shows how it can be profitable to follow trends even when they look over-extended, because “accidents” such as this tend to happen in the direction of the trend more often than not. When news comes out like this that supports a trend, it tends also to be a powerful move
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There is nothing due today concerning the JPY. Regarding the USD, there will be releases of CPI, Unemployment Claims and Philly Fed Manufacturing Index data at 1:30pm London time.