USD/JPY Signal Update
Yesterday’s signals produced a short trade following the bearish engulfing candle’s rejection of the resistance level identified at 111.33. The would still be open as at the time of writing.
Today’s USD/JPY Signals
Risk 0.75%
Trades must be taken between 8am New York time and 5pm Tokyo time, during the next 24-hour period only.
Long Trades
* Long entry following a bullish price action reversal on the H1 time frame immediately upon the next touch of 110.26, 109.81 or 108.56.
* 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 111.33 or 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.
* 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
The pair was again held at the resistance level at 111.33, although there has not been any strong fall, and we have seen a marked decrease in volatility. This is not due to technical reasons alone – it is a public holiday in Japan and the market is generally coiling ahead of some key U.S. data releases due later anyway.
The long-term trend is strongly bullish and after the FOMC release it is quite possible there will be a sharp move in either direction. Any downwards move might be particularly sharp due to some large crowded trades being stopped out.
There is nothing due today regarding the JPY. Concerning the USD, there will be releases of Core Durable Goods Orders and Unemployment Claims data at 1:30pm London time, followed later by Crude Oil Inventories at 3:30pm and FOMC Meeting Minutes at 7pm.