USD/JPY Forex Signal - 20 July 2017

Yesterday’s signals were not triggered, as the bullish price action took place a little below the anticipated support level at 111.74.

Today’s USD/JPY Signals

Risk 0.75%.

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

Short Trade 1

  • Go short following a bearish price action reversal on the H1 time frame immediately upon the next touch of 112.85.
  • 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.
  • 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 111.39.
  • 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.
  • 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 forecasted yesterday that the bulls would win and force a breakout of the bearish channel, and I was correct. At the time of writing, the price is testing a new resistance level at 112.36, which may hold, but I do not have a lot of confidence in it. The New York open is too far away so I am ignoring this level today. I think a continued movement up to 112.85 is more probable.

The Bank of Japan’s release made very negligible impact this morning, and this pair is in a long-term ranging pattern, so is likely to make lots of short term moves both up and down soon. There is no true trend.

USDJPY

There is nothing due today concerning the JPY. Regarding the USD, there will be a release of Unemployment Claims data at 1:30pm London time.

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.