USD/JPY Signal Update

Yesterday’s signals were not triggered as neither of the key price levels were ever reached.

Today’s USD/JPY Signals

Risk 0.75%

Trades may be taken from 8am New York time to 5pm Tokyo time only, during the next 24-hour period.

Short Trade 1

* Go short following a bearish price action reversal on the H1 time frame immediately upon the next touch of 103.96.

* 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.

* Take off 50% of the position as profit when the trade is 20 pips in profit and leave the remainder of the position to ride.

Long Trade 1

* Go long following a bullish price action reversal on the H1 time frame immediately upon the next touch of 102.21.

* 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.

* Take off 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

It was starting to look yesterday as if the strong rise in this pair was beginning to show signs of cooling off and so far, this is what seems to have happened. Although the price did make a new high yesterday, the bullish movements were not very great.

This could mean that the pair is ready to start topping out, or it could just mean that we are awaiting some very crucial economic data releases concerning the USD later today and tomorrow (mostly tomorrow) for further direction.

I still would remain wary of going short just yet.

There is nothing due today concerning the JPY. Regarding the USD, there will be a release of Unemployment Claims data at 1:30pm London time, followed by ISM Manufacturing PMI at 3pm.