USD/JPY Forex Signal - 14 June 2017

14 June 2017 9:39:46 AM

By: DailyForex.com

Yesterday’s signals were not triggered as none of the key levels were ever reached.

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 110.72 or 111.47.
  • 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 Trade 1

  • Go long following a bearish price action reversal on the H1 time frame immediately upon the next touch of 109.63.
  • 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 continues to consolidate, holding above two short-term ascending trend lines, without yet retesting the upper descending trend line of the long-term bearish channel, as shown in the chart below. The situation is likely to remain like this until the FOMC release later, which could push the price anywhere. I maintain a bearish bias due to the technical channel and long-term bearish trend, so I think dovish news for the USD, or a spike up to 110.72, could both produce a strong downwards movement later after the release.

USDJPY

There is nothing due today concerning the JPY. Regarding the USD, there will be a release of CPI and Retail Sales data at 1:30pm London time, followed by Crude Oil Inventories at 3:30pm. Finally, we will get the FOMC Statement, Federal Funds Rate, and Economic Projections at 7pm with the usual Press Conference half an hour later.

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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