USD/JPY Signal- Dec. 31, 2013
USD/JPY Signal Update
Yesterday’s signal was not triggered and expired.
Today’s USD/JPY Signal
Entry should be made before 2pm today London time.
Enter long at the next bar break of an hourly pin or strong outside or engulfing bar rejecting and closing above both 104.56 and 104.64. If these levels are not touched and rejected by the same hourly bar, or if an hourly bar closes more than a few pips below 104.64, the trade is immediately invalidated and should not be taken.
Stop loss at the local swing low or 104.48, depending upon how close the entry is to 104.64. If the entry is very close, then the lower of the two should definitely be used.
Take the risk off the position at 104.99, move the stop loss to break even, and be sure to close the trade today. Try to reach a reward to risk ratio of at least 1:1.
There is important news today for the USD at 3pm (CB Consumer Confidence) London time which might move this pair. However it is also a public holiday in Japan which might make things quieter.
The wonderful uptrend in this pair was maintained over the Christmas period with bullish trend lines holding and new support levels being established at 103.82 and 104.62. The upper channel trend line was breached to the upside twice, the psychologically key level of 105.00 was broken to the upside, and new 5-year highs were made. All in all there is every reason to be bullish and take a long bias, despite the price falling off yesterday and failing to hold above 105.00. I do not see any significant resistance levels before 106.38:
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