USD/JPY Forex Signal

17 July 2017 7:40:35 AM

By: DailyForex.com

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

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 112.85 or 113.71.
  • 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.
  • Take off 50% of the position as profit when the trade is 20 pips in profit and leave the remainder of the position to ride.

Long Trades

  • Go long following a bearish price action reversal on the H1 time frame immediately upon the next touch of 111.74 or 111.39.
  • 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.
  • Take off 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

The price was already looking bearish last week as it began to break supportive trend lines within its medium-term bullish channel. I had thought the key level at 112.85 would probably hold and give a bullish move, but after an initial bounce, it broke down as the U.S. Dollar weakened towards the end of the week, and now seems to be acting as resistance.

This means there is a bearish outlook in line with Dollar weakness, but a look at the long-term chart shows that this pair is really consolidating around a centre of gravity at about 112.25. This means that there should be both long and short trading opportunities unless there is a major change to the longer-term price pattern.USDJPY

There is nothing due today concerning either the JPY or the USD.

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.

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