USD/JPY Signal- Jan. 8, 2014

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By: DailyForex.com

 

USD/JPY Signal Update

No signal was given yesterday.

Today’s USD/JPY Signal

Risk 0.50%.

Entry should be made between 1:15pm today and 8am tomorrow London time.

Long Trade 1

Enter long with a limit order at a touch of 103.85, placing the stop loss at 103.43.

Move the stop to break even when the trade is 40 pips in profit. Take 50% of the profit at 104.97 and leave the remainder to ride.

USD/JPY Analysis

Unfortunately yesterday I wrote “I am not inclined to look for a long entry on any retest of a bullish breakout just yet” (of any bullish breakout from the triangle). There was just such an opportunity last night following a breakout and retest of the triangle which would have produced an excellent long trade, as can be seen on the chart below:

USDJPY Signal 1814

It is a bit surprising that we have had such a move already, before the key USD data begins to be released later today.

This is a sign that the market is very bullish on this pair. I do not see an obvious level to sell at, nor do I want to be short yet of this pair.

I am reinstating the key support level of 103.85, which might just get hit at the end of a dramatic downwards move following the news events later today. As it is a long way away, I am looking for a long touch trade at 103.85 following the first important news item later today.

I am not giving this as a signal, but an alternative long entry could be at another retest and rejection of the broken upper triangle trend line.

There is very important news later today at 1:15pm London time for the USD (ADP Non-Farm Employment Change) and again at 7pm London time (FOMC Meeting Minutes).

Adam is a Forex trader who has worked within financial markets for over 12 years, including 6 years with Merrill Lynch. He is certified in Fund Management and Investment Management by the U.K. Chartered Institute for Securities & Investment.