USD/JPY Forex Signal - 6 January 2015

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By: DailyForex.com

USD/JPY Signal Update

Yesterday’s signals expired without being triggered.

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

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

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

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

  • Remove 50% of the position as profit when the trade is 25 pips in profit and leave the remainder of the position to run.

 

Short Trade 1

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

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

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

  • Remove 50% of the position as profit when the trade is 25 pips in profit and leave the remainder of the position to run.

USD/JPY Analysis

The JPY was one of the strongest currencies yesterday and we had a considerable pull back. It is interesting that this pair, which has been the strongest and longest-running trending pair by far, seems to be running out of steam over recent days. We have not made a new high for almost 4 weeks and the more medium-term trend is starting to look like a downwards one. Having said that, there is still plenty of movement within the swings, so there is no reason why 117.75 will not produce a reasonable long trade.

USDJPY 1615

There is a high-impact data release scheduled today concerning the USD, but nothing regarding the JPY. At 3pm London time, there will be a release of U.S. ISM Non-Manufacturing PMI data.

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