USD/JPY Forex Signal - 22 December 2015

USD/JPY Signal Update

Yesterday’s signals were not triggered and expired.

 

Today’s USD/JPY Signals

Risk 0.50%

Trades must be taken between 8am New York time and 5pm Tokyo time only.

 

Long Trade 1

* Long entry following a bullish price action reversal on the H1 time frame immediately upon the next entry into the zone between 120.50 and 120.27.

* 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.

* 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

* Short entry following a bearish price action reversal on the H1 time frame immediately upon the next touch of 121.75.

* 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.

* 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 2

* Short entry following a bearish price action reversal on the H1 time frame immediately upon the next entry into the zone between 122.11 and 122.22.

* 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.

* 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

The USD weakened somewhat everywhere yesterday and with the JPY being one of the stronger currencies, the fall has been fairly notable here although the pip amounts are not huge.

We have printed some new resistance on the way down, at 171.75, but as I wrote yesterday, the support between 120.00 and 120.50 or thereabouts does look convincing, so I think we can expect a bullish reversal here, possible even a little sooner than 120.50, maybe at around 120.75.

I suspect the next good opportunity is going to be on the long side for 100 pips or so.USDJPY

There is nothing due today concerning the JPY: it is a public holiday in Japan. Regarding the USD, there will be a release of Final GDP data at 1:30pm London time.

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.