USD/JPY Forex Signal - 6 June 2017

06 June 2017 9:26:04 AM

By: DailyForex.com

Yesterday’s signals were not triggered as there was no bullish price action when the price reached 110.00.

Today’s USD/JPY Signals

Risk 0.75%.

Trades must be entered between 8am New York abd 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 110.72.
  • 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 Trades

  • Go long following a bearish price action reversal on the H1 time frame immediately upon the next touch of 109.41 or 108.69.
  • 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.
  • Take off 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

The price fell quite strongly again for another day, breaking below trend lines and the psychologically key 110.00 level. The long-term bearish trend is picking up steam. The chart below shows a very wide but very long-term bearish symmetrical channel is in force, and there are new trend lines which have recently been broken and may now provide additional resistance levels for interesting short entries. The most obvious of these is sitting at 110.72 but the area around 110.25 could also work.

I would be very careful of taking long trades any time soon.

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.

DailyForex Newsletter
0 User Reviews

Registration is required to ensure the security of our users. Login via Facebook to share your comment with your friends, or register for DailyForex to post comments quickly and safely whenever you have something to say.

Log in | Create a DailyForex.com Account Now