USD/JPY Forex Signal - 24 May 2016

USD/JPY Signal Update

Yesterday’s signals gave a profitable long trade upon the rejection of the support level at 109.15. It would be a good idea to take substantial profits if that has not been done already.

Today’s USD/JPY Signals

Risk 0.75%

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

 

Short Trades

  • Short entry following a bearish price action reversal on the H1 time frame immediately upon the next touch of 109.73 or 109.89.

  • 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.

 

Long Trades

  • Long entry following a bullish price action reversal on the H1 time frame immediately upon the next touch of 109.13.

  • 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.

 

USD/JPY Analysis

The Japanese Yen has been very strong, but the USD has also been relatively strong, meaning that the price just could not break below the lower channel trend line, which ended up holding the price. The bounce off that line has been with some momentum, and is currently within its second wave which seems to be faltering at the resistance level of 109.54 as at the time of writing.

It should be noted that the pair is still within a clear long-term bearish trend, so it may be that the biggest pips still to come in the near future are on the short side.

USDJPY

There are no high-impact events due today concerning either the JPY or the USD.

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.