USD/JPY Signal Update
Yesterday’s signals may have produced both long and short profitable trades, with the key resistance level at 102.60 holding after the identified support level at 101.27 also held earlier. There is a very strong probability that it would be a good idea to exit any open trades sitting in profit, as the FOMC release approaches.
Today’s USD/JPY Signals
Risk 0.75%
Trades may be taken from 8am New York time to 5pm Tokyo time, over the next 24-hour period only.
Make sure trades are protected by 6:30pm at the latest.
Long Trades
Long entry following a bullish price action reversal on the H1 time frame immediately upon the next touch of 101.27 or 100.93.
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.
Remove 50% of the position as profit when the trade is 20 pips in profit and leave the remainder of the position to run.
Short Trades
Short entry following a bearish price action reversal on the H1 time frame immediately upon the next touch of 102.60, 102.75 or 103.25.
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.
Remove 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
This pair was quiet in advance of the Bank of Japan’s monthly report which was released a few hours ago. The release sent the price up quite strongly to the resistant area at about 102.60/75 using the support at 101.27 as a base. The price is more or less back to where it started as it stabilizes again before the FOMC release due later.
These moves are good confirmation of the support and resistance levels mentioned, but they will probably be useless until the FOMC release which could push the price anywhere. Look for post-FOMC rejections or alternatively strong breaks of any of these key levels.
There is nothing due today concerning the JPY. Regarding the USD, there will be a release of Crude Oil Inventories data at 3:30pm London time, followed by all the FOMC releases at 7pm and the usual press conference.