USD/JPY Forex Signal | DailyForex


Yesterday’s signals were not triggered, as none of the key levels were ever reached.

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 Trades

  • Short entry following a bearish price action reversal on the H1 time frame immediately upon the next touch of 113.56 or 114.18.

  • 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 Trade

  • Long entry following a bullish price action reversal on the H1 time frame immediately upon the next touch of 112.41.

  • 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 the bearish trend line shown in the price chart below was confluent with a generally resistant area above 113.40 and this area was likely to be pivotal: failures there might have provided nice short trade entries. In a way, this wasn’t a bad call as the price never managed to get above 113.32. The price is rising now after a period of consolidation, and is not far from the bearish trend line, so it may well find it hard to rise much further. I think that much will depend upon the U.S. stock market at the New York open later today. If we see another sell-off which gathers pace, the Japanese Yen is usually a safe-haven destination upon stock sell-offs, so we may be setting up for a downwards movement.

USDJPY

There is nothing important due today concerning the JPY. Regarding the USD, there will be a release of PPI data at 1:30pm London time.



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