USD/JPY Forex Signal - 26 May 2015

USD/JPY Signal Update

Last Thursday’s signals were not triggered as the price did not hit any of the key levels mentioned during that next day.

Today’s USD/JPY Signals

Risk 0.75%

Trades may only be taken between 8am and 5pm New York time only, and then after 8am Tokyo time later.

 

Long Trade 1

  • Go long following a bullish price action reversal on the H4 time frame immediately upon the next touch of the 121.46.

  • Put 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 run.

 

Long Trade 2

  • Go long following a bullish price action reversal on the H4 time frame immediately upon the next touch of the 120.71.

  • Put 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 run.

 

Long Trade 3

  • Go long following a bullish price action reversal on the H4 time frame immediately upon the next touch of the 120.49.

  • Put 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 run.

 

Short Trade 1

  • Go short following a bearish price action reversal on the H4 time frame immediately upon the next touch of the trend line currently sitting at around 122.71.

  • Put 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.

  • Take off 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

We have seen renewed USD strength over the past few days and the JPY is one of weakest currencies relatively speaking. Therefore long USDJPY has looked attractive and right now any long positions are being rewarded as we break out strongly above recent highs and make what is in fact a new multi-year high.

We have new support below close to 121.50 which should remain significant. Regardless of the strongly bullish position, there is an old bullish trend line that the price is very close to touching. This could mark a logical exhaustion point of this upwards swing even if only for a while, as shown in the chart below.

USDJPY 52615

There will be a release of U.S. Core Durable Goods data at 1:30pm London time, followed by CB Consumer Confidence at 3pm.

Adam Lemon

Adam Lemon began his role at DailyForex in 2013 when he was brought in as an in-house Chief Analyst. Adam trades Forex, stocks and other instruments in his own account. Adam believes that it is very possible for retail traders/investors to secure a positive return over time provided they limit their risks, follow trends, and persevere through short-term losing streaks – provided only reputable brokerages are used. He has previously worked within financial markets over a 12-year period, including 6 years with Merrill Lynch.