USD/JPY Forex Signal - 24 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 made only between 8am and 10am New York times.

 

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.

 

USD/JPY Analysis

The pair was very flat over the most recent few days, but has come to life during the previous Asian session, continuing its downwards trend that began after the Bank of Japan issued its monthly report last week. The Yen is strong and the USD is coming under some pressure lately, and we have now finally, as at the time of writing, reached an area that had previously been very crucial, beginning at 120.50 and really stretching all the way down to the psychologically crucial price of 120.00.

If the price remains between 120.50 and 120.00 until New York opens, there could be a good opportunity to go long here, even though the Yen is one of the strongest currencies, as it is quite likely to pull back at least 75 or 100 pips or so from this area before it will break 120.00. Positive US economic data due shortly after the New York open could help push the price up with a proper reversal of direction.

USDJPY

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.

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.