USD/JPY Forex Signal - 27 June 2016

USD/JPY Signal Update

Last Thursday’s signals were not triggered.

Today’s USD/JPY Signals

Risk 0.75%

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

Short Trades

  • Go short following a bearish price action reversal on the H1 time frame immediately upon the next touch of 102.50, 102.74 or 103.10.

  • 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.

  • Remove 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 1

  • Go long following a bullish price action reversal on the H1 time frame immediately upon the next touch of 100.50.

  • 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.

  • Remove 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

I wrote last Thursday that “A surprise Leave vote should send this pair falling sharply.” The pair actually fell by more than 6%. However it is interesting and significant that the price has recovered a lot from its multi-year low at 99 which was briefly touched last Friday. The highest stage of the retracement of the fall was quite deep, up to about a 50% level.

This suggests that rather than fall, the environment over the coming days may benefit both currencies, leading to a consolidation around or even above the psychologically important 102.50 level.

USDJPY

There is nothing due 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.