USD/JPY Forex Signal - 7 February 2017

USD/JPY Signal Update

Yesterday’s signals were not triggered as there was no bullish price action when the price reached 111.91.

Today’s USD/JPY Signals

Risk 0.75%.

Trades may only be entered between 8am New York time and 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 112.00 or 111.35.

  • 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 Trades

  • Short entry 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.

  • 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

I wrote yesterday that a break below 112.00 was the more likely short-term scenario, and this is what happened, but we then got a U-shaped, short-term bottom and the price has broken back up above 112.00 with some force as the USD recovers since today’s London open.

We still have a medium-term downwards trend and it is too early to say that the long-term upwards trend has resumed, but there is short-term buying going on as at the time of writing.

It seems that 112.00 will probably become support again.

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.