USD/JPY Forex Signal - 24 August 2017

Yesterday’s signals were not triggered as there was no bullish price action at 109.17.

Today’s USD/JPY Signals

Risk 0.75%.

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

Short Trade 1

  • Short entry following a bearish price action reversal on the H1 time frame immediately upon the next touch of 109.80.
  • 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

  • Long entry following a bullish price action reversal on the H1 time frame immediately upon the next touch of 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.
  • 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 bulls and bears are generally equally matched in the current price area, although it looks as if bulls are getting the upper hand over recent hours. This suggests that a successful break above the nearest resistance level at 109.80 would be a very significant development, despite the long-term bearish trend, as the support at 108.69 marks a key long-term inflection point, and so it would not be surprising if it held. Before 109.80, there are two bearish trend lines shown in the chart below which may influence the price if reached.

(image0124082017usdjpy)

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.