USD/JPY Signal- Jan. 8, 2014

Adam Lemon

 

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 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.
Learn more from Adam in his free lessons at FX Academy

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