USD/JPY Forex Signal - 31 December 2014

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By: DailyForex.com

USD/JPY Signal Update

Yesterday’s signals were not triggered and expired.

Today’s USD/JPY Signal

  • Risk 0.75%

  • Trades may be entered only before 5pm New York time, and then after 8am Tokyo time.

 

Long Trade 1

  • Long entry following bullish price action on the H1 time frame immediately after the price first reaches 117.75.

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

  • Move the stop loss to break even once the trade is 25 pips in profit.

  • Take off 50% of the position as profit when the trade is 25 pips in profit and leave the remainder of the position to ride.

Short Trade 1

  • Short entry following bearish price action on the H1 time frame immediately after the price first reaches 121.00.

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

  • Move the stop loss to break even once the trade is 25 pips in profit.

  • Take off 50% of the position as profit when the trade is 25 pips in profit and leave the remainder of the position to ride.

USD/JPY Analysis

This pair made a fairly strong drop yesterday, before recovering somewhat later.

It is too early to write off the upwards trend, but it is beginning to look like this pair is entering a phase of consolidation. However as the swings have been very strong, the initial waves of the consolidation are likely to produce quite a lot of directional pips.

Right now the pair is in no-man’s land, although there are weakly bullish signs.

USDJPY 123114

There are no high-impact data releases scheduled today concerning the JPY, as it is a public holiday in Japan. Regarding the USD, there will be a release of Unemployment Claims data at 1:30pm London time.

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