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USD/JPY Forex Signal - 12 December 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

Last Thursday’s signals were not triggered as there was no suitable bearish price action at a resistance level.

Today’s USD/JPY Signals

Risk 0.75%

Trades must be taken from 8am New York time until 5pm Tokyo time, during the next 24-hour period only.

 

Long Trade 1

  • Long entry following a bullish price action reversal on the 1H1 time frame immediately upon the next touch of 114.77.

  • 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.

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

 

Short Trade 1

  • Short entry following a bearish price action reversal on the H1 time frame immediately upon the next touch of 116.28.

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

  • Move 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 run.

USD/JPY Analysis

I wrote on Thursday that the consolidation was starting to look bullish and the price quickly broke up, and has been rising strongly ever since last Thursday’s New York session. At the time of writing, the price is finding resistance at the level of 115.97, so I would look beyond that level to a place a little further above for a possible short trade, at 116.28. However, it is probably going to be too early to short here any time soon, unless the price stalls under 116.28 over several hours. The picture is still bullish over both the short and long terms.

USDJPY

There is nothing due today regarding either the USD or the JPY.

Adam Lemon
About 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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