USD/JPY Forex Signal - 15 October 2015

USD/JPY Signal Update

Yesterday’s signals expired without being triggered as there was no bullish price action when the price reached the anticipated support at 119.04.

Today’s USD/JPY Signals

Risk 0.50%

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 H1 time frame immediately upon the next touch of 118.00.

  • 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.

  • Remove 50% of the position as profit when the trade is 20 pips in profit and leave the remainder of the position to ride.

 

Short Trade 1

  • Go short following a bearish price action reversal on the H1 time frame immediately upon the next touch of 119.07.

  • Place 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.

  • Remove 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

Finally we have had a significant development in this pair, with a break below the previous support at 119.04 which seems so far to be holding. I seem to have picked this level well as it flipped to become resistance earlier, and the price fell sharply from there and went as far as just a few pips from the anticipated support at 118.00.

This break is bearish so short trades are probably better, ideally from 119.07, but there may also be a bullish reversal that takes the price back into the former range off 118.00 if we get down there again.

USDJPY

Regarding the USD, there will be releases of CPI and Unemployment Claims data at 1:30pm London time, followed by the Philly Fed Manufacturing Index at 3pm. Concerning the JPY, the Governor of the Bank of Japan will be speaking at 7:35am.

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.