USD/JPY Signal- April 29, 2014



USD/JPY Signal Update

Yesterday’s signals expired without being triggered.

Today’s USD/JPY Signal

Risk 0.75%

Entries may be made either before 5pm today New York time, or between 8am Tokyo time and 8am London time tomorrow (Wednesday).

Short Trade 1

Short entry following confirming bearish price action on the H1 chart after a first touch of 103.00.

Place a stop loss 1 pip above the local swing high.

Move the stop loss to break even when the price reaches 102.75.

Remove 25% of the position as profit at 102.75, then 50% of the original position size at 102.50, and then leave the remainder of the position to run.

USD/JPY Analysis

This pair rose fairly firmly yesterday following its near-touch of the support level I identified last week at 101.91. It was extremely quiet during the Tokyo session due to the public holiday in Japan today. However it should get livelier today, especially after the New York open.

Yesterday’s daily candle was significantly bullish as it reversed the real bodies of the previous 2 days’ daily candles, so we can expect continued bullishness. We should be able to at least equal the high of the last 2 weeks at 102.75. If we can reach beyond that to 103.00 (currently confluent with the GMT R2 daily pivot point) and we have some bearish price action there, that level should be good for a conservative short.

I am not looking at long trades today as I would want to see the price fall to at least 101.91 but not before tomorrow. As I mentioned before, a touch of the very long-term bullish trend line now at 101.30 or thereabouts should make a great long trade. At the moment we are too far away from these levels to worry about them.

I am not as long as my colleague Christopher Lewis and I am ready to look for short trades in the right circumstances.

USDJPY Signal 42914

There is no high-impact news due today for the JPY. At 3pm London time there will be a release of US CB Consumer Confidence which could affect the USD.

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