USD/JPY Forex Signal

16 February 2017 10:01:42 AM

By: DailyForex.com

Yesterday’s signals produced an excellent, profitable short trade off the bearish inside candle rejection of the identified resistance level at 114.90. At the time of writing it looks as if the price is still falling, but when the price begins to stabilize or reverse over a few hours, it will be a good idea to close out the trade for more profit.

Today’s USD/JPY Signals

Risk 0.75%.

Trades may only be taken from 8am New York time to 5pm Tokyo time, over the next 24-hour period.

 

Long Trades

  • Long entry following a bullish price action reversal on the H1 time frame occurring upon the next touch of 112.95 or 112.50.

  • 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.

  • Remove 50% of the position as profit when the trade is 20 pips in profit and leave the remainder of the position to ride.

 

Short Trade 1

  • Short entry following a bearish price action reversal on the H1 time frame immediately upon the next touch of 114.90.

  • 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.

  • Remove 50% of the position as profit when the trade is 20 pips in profit and leave the remainder of the position to ride.

 

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

Not only did the USD reverse strongly yesterday during the late period of the New York session, but the Japanese Yen gained over the subsequent Asian session, which has produced overall a strong move down of well over 1% in value. We should also not the price hit a significant resistance level just below the psychologically key 115.00 big figure level, and has recently broken a short-term supportive trend line, so all indications are of a short-term bearish trend which is heading toward 112.95.USDJPY

There is nothing due today concerning the JPY. Regarding the USD, there will be releases of Building Permits, the Philly Fed Manufacturing Index, and Unemployment Claims data at 1:30pm London time.

Adam is a Forex trader who has worked within financial markets for over 12 years, including 6 years with Merrill Lynch. He is certified in Fund Management and Investment Management by the U.K. Chartered Institute for Securities & Investment. Learn more from Adam in his free lessons at FX Academy.

DailyForex Newsletter
0 User Reviews

Registration is required to ensure the security of our users. Login via Facebook to share your comment with your friends, or register for DailyForex to post comments quickly and safely whenever you have something to say.

Log in | Create a DailyForex.com Account Now