USD/JPY Forex Signal - 28 September 2016

USD/JPY Signal Update

Yesterday’s signals were not triggered as none of the key levels were yet reached.

Today’s USD/JPY Signals

Risk 0.75%

Trades may only be entered from 8am New York time until 5pm Tokyo time, over the next 24-hour period.

 

Long Trades

  • Long entry following a bullish price action reversal on the H1 time frame immediately upon the next touch of 100.00 or 99.50.

  • 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.

 

Short Trades

  • Short entry following a bearish price action reversal on the H1 time frame immediately upon the next touch of 101.27, 101.50 or 102.60.

  • 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.

USD/JPY Analysis

The price is now consolidating within a relatively short-term triangle. It feels as if a break up and move to at least 101.27 is coming next, more likely than not. I would not look to trade the triangle’s trend lines.

There is a lot of buying around 100.00 although there is a long-term bearish trend. However, if the price is squeezed and pushed up above 102.75, in my view, the trend comes to an end.

For the time being the trend is still in force, but it does seem to be flattening.USDJPY

Concerning the USD, there will be a release of Core Durable Goods Orders at 1:30pm London time followed by testimony from the Chair of the Federal Reserve before Congress at 3pm and Crude Oil Inventories data at 3:30pm. Regarding the JPY, the Governor of the Bank of Japan will be speaking at 7:35am.

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.