USD/JPY Forex Signal | DailyForex


Yesterday’s signals were not triggered, as the reversals in both directions took place slightly beyond the identified levels.

Today’s USD/JPY Signals

Risk 0.75%.

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

Short Trade

  • Short entry following a bearish price action reversal on the 1H1 time frame H1H1H1 time frame immediately upon the next touch of 111.86.

  • 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.

  • 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

  • Long entry following a bullish price action reversal on the H1 time frame immediately upon the next touch of 110.80 or 110.55.

  • 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.

The best method to identify a classic “price action reversal” is for an hourly candle to close, such as a pin bar, a doji, an outside or even just an engulfing candle with a higher close. You can exploit these levels or zones by watching the price action that occurs at the given levels.

USD/JPY Analysis

I wrote yesterday that I was mildly bearish below 111.37 and that worked out fairly well for a gain of 30 pips or so before the price reversed later in the day with a strong bullish movement. Yet the bulls again faded away and the price fell quite strongly during the Asian and early London sessions. It seems clear that the price is in a medium-term bearish channel, which is wide, yet it remains difficult to forecast any larger movements in this pair, as action is quite congested. I do expect the support at 110.80 to be strong if it is reached, but I have no directional bias today.

USDJPY

There is nothing important due today concerning the JPY. Regarding the USD, there will be a release of Crude Oil Inventories data at 3:30pm London time.



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