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USD/JPY Forex Signal - 3 May 2016

By 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.

 

USD/JPY Signal Update

Yesterday’s signals were not triggered.

Today’s USD/JPY Signals

Risk 0.75%

Trades may only be taken between 8am New York time and 5pm Tokyo time.

 

Short Trades

  • Go short following a bearish price action reversal on the H1 time frame immediately upon the next touch of 106.68 and 107.82.

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

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

  • Take off 50% of the position as profit when the trade is 20 pips in profit and leave the remainder of the position to run.

 

Long Trades

  • Go long following a bullish price action reversal on the H1 time frame immediately upon the next touch of 105.44 or 104.76.

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

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

  • Take off 50% of the position as profit when the trade is 20 pips in profit and leave the remainder of the position to run.

USD/JPY Analysis

The Yen has not been the strongest of all currencies over the past day or so, but it has been strong enough against a weak U.S. Dollar to make this pair fall to new 18 month lows. The price fell quite sharply but seems to have found some quite strong support at 105.50 a little ahead of the anticipated support level at 105.44.

There may be minor resistance at around 106.25 but it is the 106.68 level that will be the most attractive at which to look for a short trade entry.

The pair should become quiet after New York closes due to the Japanese market being closed.

USDJPY

 There are no high-impact events due today concerning the USD.

There is nothing due today concerning the JPY as it is a public holiday in Japan.

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.

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