USD/JPY Forex Signal - 18 April 2016

USD/JPY Signal Update

Last Thursday’s signals were not triggered.

Today’s USD/JPY Signals

Risk 0.75%

Trades must be entered between 8am New York time and 5pm Tokyo time.

 

Short Trade 1

  • Short entry following a bearish price action reversal on the H1 time frame immediately upon the next touch of 109.00.

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

  • Adjust 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.

 

Long Trade 1

  • Long entry following a bullish price action reversal on the H1 time frame immediately upon the next touch of 107.57.

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

  • Adjust 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

The pair gapped down below the support level at 108.43 which is already being retested from the other side, and may now act as resistance and hold as a high of the day. However, that looks doubtful at present, so I would not be looking for a short trade there the way things stand right now. Instead, the round number at 109.00 looks like a safer and more reliable resistance level.

The Yen was very strong following the OPEC failure to agree oil production levels yesterday, but has been falling off strongly over the last couple of hours. The gap might well get filled very soon.

USDJPY

 There is nothing due today regarding either the JPY or the USD.

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.