USD/JPY Forex Signal - 26 April 2017

Yesterday’s signals were not triggered as there was no bearish price action at 111.02.

 

Today’s USD/JPY Signals

Risk 0.75%.

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

 

Short Trades

* Go short following a bearish price action reversal on the H1 time frame immediately upon the next touch of 111.48 or 111.71.

* 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 run.

 

Long Trade 1

* Go long following a bearish price action reversal on the H1 time frame immediately upon the next touch of 110.98.

* 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 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 a break above there (the long-term upper bearish channel trend line) could signify that the long-term bearish trend is coming to an end. This is what happened and the break was very strong. We have in recent hours seen the break of more resistance too, but so far 111.48 looks like it is going to hold.

There is a lot of market focus and volatility here, and the pair approaches a crucial time later with the Bank of Japan giving a monthly report. This means that unusual movements are possible, but overall the pair looks bullish above the old descending channel.

USDJPY

Concerning the USD, there will be a release of Crude Oil Inventories data at 3:30pm London time. Regarding the JPY, there will be a release at 4:50am of the Bank of Japan’s Monetary Policy Statement, Outlook Report and Policy Rate, followed by the usual press conference at 7:30am.

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.