USD/JPY Signal Update
Yesterday’s signals were expired without being triggered.
Today’s USD/JPY Signals
Risk 0.75% per trade.
Entries may only be made between 8am and 5pm then from Midnight to 7am London time.
Long Trade 1
Go long following bullish price action off either of the broken bearish trend lines currently sitting at around 101.19.
Place the stop loss 1 pip below the local swing low.
Move the stop loss to break even when the price reaches 101.50.
Remove 25% of the position as profit at 101.70 and leave the remainder of the position to ride.
Short Trade 2
Go short following bearish price action off either of the bearish trend lines currently sitting at around 102.45.
Place the stop loss 1 pip above the local swing high.
Move the stop loss to break even when the price reaches 102.05.
Remove 50% of the position as profit at 102.05, or take all of the risk off the trade if it is more than 50% of the position size, and leave the remainder of the position to ride.
As expected yesterday, this pair was very quiet before the FOMC, which had the ultimate impact of pushing the USD up to load on shorts and since then it has been falling. Unfortunately it did not quite reach the 102.50 level at which I was looking for shorts.
The price action overnight looks fairly bearish and we could see a continuing fall during the London session, although we are now close to some supportive levels as defined by the GMT S1 and S2 daily pivot points as shown in the chart below.
The best bet for today would be poor US data later which might push the price down to the trend lines temporarily, which could give a good long opportunity if the price action is right. There is also a key Fibonacci level at 101.19 which could strengthen this support.
Above us there is a bearish trend line which might give a short opportunity, though this looks quite unlikely to happen today.
The Governor of the Bank of Japan will be speaking tomorrow morning just before the London open which is likely to affect the JPY, although these signals are timed to be expired before that point. At 1:30pm London time US Unemployment Claims numbers will be released, followed by the Philly Fed Manufacturing Index at 3pm, which may affect the USD.
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