USD/JPY Forex Signal - 2 August 2016

USD/JPY Signal Update

Yesterday’s signals were not triggered as unfortunately the swing high was just a few pips short of the anticipated resistance at 102.89.

Today’s USD/JPY Signals

Risk 0.75%

Trades may only be entered between 8am New York times until 5pm Tokyo time over the next 24 hours only.

 

Short Trades

  • Go short following a bearish price action reversal on the H1 time frame immediately upon the next touch of 102.82 or 103.96.

  • 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.

  • Take off 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

  • Go long following a bullish price action reversal on the H1 time frame immediately upon the next touch of 101.46 or 100.00.

  • 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.

  • Take off 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

We had another very strong downwards move that started during the previous Asian session from just a few pips below the anticipated resistance at around 102.90. At the time of writing, the price fell all the way to the next anticipated support level at 101.46, where over recent minutes it has seemed to possibly be finding some support.

There is a strong downwards trend and the charts are flowing with the trend so a long from bullish price action here would be fairly brave. However it is a long-term support level, so if the price does linger here and start to turn around, it will gradually become a safer trader.

The long-term trend is strongly bearish

.USDJPY

There is nothing of high importance 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.