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USD/JPY Forex Signal - 4 January 2017

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 as there was no bullish price action at 117.80.

Today’s USD/JPY Signals

Risk 0.75%.

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

Protect any open trade at 6:30pm London time.

 

Long Trades

  • Long entry following a bullish price action reversal on the H1 time frame immediately upon the next touch of 117.19 or 116.00.

  • 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 ride.

 

Short Trades

  • Short entry following a bearish price action reversal on the H1 time frame immediately upon the next touch of 118.77 or 119.12.

  • 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 ride.

USD/JPY Analysis

There are good reasons to be bullish, e.g. major lows are holding and the pair has seen a massive rise over recent weeks. However, it is starting to look as though the price just can’t really stay above the 118.50 area. On the other hand, much of this recent consolidation has been over a slow holiday period, and there is a major U.S. data release this evening. Overall, the odds on the trend undergoing a significant reversal soon are increasing.USDJPY

There is nothing due today regarding the JPY. Concerning the USD, there will be a release of FOMC Meeting Minutes at 7pm London time.

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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