USD/JPY Forex Signal- July 16, 2014

By DailyForex | July 16, 2014 AAA

USD/JPY Signal Update

Yesterday’s signals expired without being triggered as the price did not reach either 102.12 or either of the bearish trend lines.

Today’s USD/JPY Signals

• Risk 0.75% per trade.

• Entries may only be made between 8am and 10pm London time today, or later during the following Tokyo session.

Long Trade 1

• Go long following bullish price action off either of the broken bearish trend lines currently sitting at around 101.35 – 101.25.

• Place a stop loss 1 pip below the local swing low.

• Move the stop loss to break even when the price reaches 101.65.

• Remove 75% of the position as profit at 101.65 and leave the remainder of the position to ride.

Short Trade 1

• Go short after bearish price action on the H1 time frame following a first touch of 102.12.

• Place a stop loss 1 pip above the local swing high.

• Move the stop loss to break even when the price reaches 101.85.

• Remove 50% of the position as profit at 101.85, or take all of the risk off the trade if it is more than 50% of the position size, and leave the remainder of the position to ride.

Short Trade 2

• Go short after bearish price action on the H1 time frame following a first touch of the bearish trend line currently sitting at around 102.50.

• Place a stop loss 1 pip above the local swing high.

• Move the stop loss to break even when the price reaches 102.20.

• Remove 50% of the position as profit at 102.20, or take all of the risk off the trade if it is more than 50% of the position size, and leave the remainder of the position to ride.

USD/JPY Analysis

This pair has continued to range and contract, as I suggested would be likely to continue in yesterday’s forecast, forming double inside bars on the daily chart at yesterday’s close. This suggests that we have to break out soon. Within the last few hours we did break out to the upside, but the price has fallen back at the time of writing although it remains above the GMT daily pivot. All this is suggestive of a move up.

Despite that, there is flipped resistance overhead at 102.12 that has proved to be resilient, as well as a key Fibonacci retracement level a little above that, and this zone has been hard to break.

It is hard to say what will happen next. If the US news due later today is dramatically positive or negative for the USD, it is likely to cause a move up or down to get us at least near to 102.50 or 101.35.

USD/JPY

There are no high-impact data releases due today concerning the JPY. At 1:30pm London time there will be a release of U.S. data: Building Permits and Core CPI, which might affect the USD.

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