USD/JPY Signal- Feb. 6, 2014

Adam Lemon

 

USD/JPY Signal Update

Yesterday’s signal was not triggered and expired.

Today’s USD/JPY Signal

Long Trade 1

Enter long if a pin or engulfing bar is formed on the hourly chart when the price first reaches 99.80, on the break of the bar by 1 pip on the next bar. If a bar closes below 99.75, the trade is invalidated.

Stop loss at the local swing low.

Move the stop loss to break even at 101.00. Take 50% of the position as profit at 101.70 and leave the remainder of the position to run to 103.75.

Risk 0.50% and the trade may be taken until 8am London time tomorrow.

USD/JPY Analysis

Yesterday was a quiet and inconclusive day. We have had three consecutive daily lows in the area of 100.80 so it seems support is being carved out there. Although the downwards move has stalled, the bearish trend line is still intact. Breaking upwards through it would be a sign that we should be heading up to 102.00 and beyond:

USDJPY Signal 2614

Below us at 99.80 is a level which is likely to be very supportive, particularly due to its confluence with the key psychological level of 100.00. I am in agreement here with Christopher Lewis’ recent analysis.

There is no important news due today for the JPY. Concerning the USD, there is the Trade Balance and Unemployment Claims at 1:30pm. This means the morning should be quiet but the afternoon lively, although the market is really waiting more to hear Friday’s news, so today may well not see as large a move as might be expected.

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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