USD/JPY Forex Signal

17 August 2017 6:45:19 AM

Yesterday’s signals produced a nicely profitable short trade following the bearish pin candle rejecting the resistance level identified at 110.94. It looks as if this position might have further to run.

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 only.

Short Trades

  • Go short following a bearish price action reversal on the H1 time frame immediately upon the next touch of 110.24 or 110.94.
  • 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 bullish price action reversal on the H1 time frame immediately upon the next touch of 109.43.
  • 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

The FOMC release produced a sharp move down from a topping out at the resistance level of 110.84. Previous technical formations have been broken and we now seem to have the end of what was just a deep pull back in a long-term bearish trend, with a resumption of the trend. The old channel has almost certainly lost its importance, so the major technical feature near the current price is a support level at 109.243. There is certainly a more bearish outlook overallUSDJPY

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 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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