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Forex pairs in this Article » USD/JPY
By: DailyForex.com

USD/JPY Signal Update



Yesterday’s signal was not triggered and expired.

Today’s USD/JPY Signal

Long Trade 1

Enter long if a pin or engulfing bar is formed on the hourly chart when the price first reaches 99.80, on the break of the bar by 1 pip on the next bar. If a bar closes below 99.75, the trade is invalidated.

Stop loss at the local swing low.

Move the stop loss to break even at 101.00. Take 50% of the position as profit at 101.70 and leave the remainder of the position to run to 103.75.

Risk 0.50% and the trade may be taken until 8am London time tomorrow.

USD/JPY Analysis

The strong down move has slowed, although we have a bearish upper trend line pacing the move which is still intact, and the price is still swinging down as can be seen in the chart below:

USDJPY Signal 2514

Although the overall picture seems bearish with the strong downwards move and the anti-risk fearful market sentiment that has led to a strengthening of the JPY across the board, we are approaching a supportive area and the decline should start to taper off.

There are no good resistant levels within range of the current price. Below us at 99.80 is level which is likely to be very supportive, particularly due to its confluence with the key psychological level of 100.00. I am in agreement here with Christopher Lewis’ recent analysis.

There is no important news due today for the JPY. Concerning the USD, there is the Non-Farm Employment Change at 1:15pm London time, followed by ISM Non-Manufacturing PMI at 3pm, but in advance of Friday’s data the pair is likely to be fairly quiet.

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