USD/JPY Forex Signal - 1 December 2014

Adam Lemon

By: DailyForex.com

USD/JPY Signal Update

Last Thursday’s signal expired without being triggered as the price never reached 117.00.

Today’s USD/JPY Signal

  • Risk 0.75%

  • Trades may only be entered between 8am London time and 5pm New York time; and then from 8am Tokyo time.

 

Long Trade 1

  • Long entry following retest and bullish price action on the H1 time frame immediately following the next touch of the broken bearish trend line below current price.

  • Put the stop loss 1 pip below the local swing low.

  • Adjust the stop loss to break even once the trade is 20 pips in profit.

  • Remove 50% of the position as profit when the trade is 20 pips in profit and leave the remainder of the position to ride.

 

Long Trade 2

  • Long entry following retest and bullish price action on the H1 time frame immediately following the next touch of 117.03.

  • Put the stop loss 1 pip below the local swing low.

  • Adjust the stop loss to break even once the trade is 20 pips in profit.

  • Remove 50% of the position as profit when the trade is 20 pips in profit and leave the remainder of the position to ride.

 

USD/JPY Analysis

Just when it looked like this pair was running out of steam again, there was some fairly strong buying as we approached the expected support at 117.03 and the price has moved up to – just – make a new multi-year high before falling off again.

It is always hard to predict the end of extremely strong trends such as this one. If you look at a weekly chart, you will notice that every recent week has made a higher low. Position traders probably do not want to be thinking about any serious exits until at least a weekly low is broken!

We may have formed a double top at 119.00 but that is very questionable.

The best opportunities look to be longs again, either from a retest of the broken trend line, or at a return to the previously resistant double top at 117.03.

USDJPY 12114

There are no high-impact data releases scheduled today that will directly affect the JPY. Regarding the USD, at 3pm London time there will be a release of U.S. ISM Manufacturing PMI data.

About the Author
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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