USD/JPY Forex Signal - 6 February 2017

USD/JPY Signal Update

Last Thursday’s signals were not triggered as none of the key levels identified were ever reached.

Today’s USD/JPY Signals

Risk 0.75%.

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

 

Long Trades

  • Go long following a bullish price action reversal on the H1 time frame occurring upon the next touch of 111.91 or 111.36.

  • 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.

  • 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.

 

Short Trades

  • Go short following a bearish price action reversal on the H1 time frame immediately upon the next entry into the zone between 113.95 and 114.07.

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

  • Adjust 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

Key levels are continuing to hold. We see a bunching up of the price just above the 112.00 level which seems to be supportive, meaning the price is forming a type of consolidating triangle. A break below 112.00 looks like the more likely short-term scenario. If that does not happen then a trip back up to the 114.00 area looks more probable.

This pair is technically still in a long-term bullish trend, but the medium-term trend is strongly bearish and the bullish trend may be over.USDJPY

There is nothing due today concerning 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.