USD/JPY Forex Signal - 29 May 2017

Last Thursday’s signals were not triggered as none of the key levels were reached during this session.

Today’s USD/JPY Signals

Risk 0.50%.

Trades must be taken between 8am and 5pm Tokyo time, during the next 24-hour period only.

Short Trade 1

  • Go short following a bearish price action reversal on the H1 time frame immediately upon the next touch of 111.49 and 111.67.
  • 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.
  • Move 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

  • Go long following a bearish price action reversal on the H1 time frame immediately upon the next touch of 110.00.
  • 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.
  • Move 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

This pair remains in an uncertain “mood”, with no real long-term trend and choppy movement over the medium-term. The line of least resistance looks to be downwards, as the price rejects the flipped support to resistance area starting at about 111.50. A return to that area could produce another good short trade entry. Below, support could start at 111.00 although there are no true key levels standing out before the big psychological round number at 110.00.
USDJPY

There is nothing due today concerning either the JPY or the USD. It is a public holiday in the U.S.A.

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.