USD/JPY Forex Signal

14 September 2017 8:34:05 AM

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 entered between 8am New York time and 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 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 Trades

  • Long entry following a bullish price action reversal on the H1 time frame immediately upon the next touch of 109.85 or 109.54.
  • 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

This pair has seen a very significant development, with the price making a strong and impulsive move up against the long-term bearish trend, and breaking the highest long-term bearish trend line shown in the chart below. The long-term bearish trend is dead. The handle at 110.00 is very psychologically significant too, so if the price can stay above that, it will be another sign that the bulls are getting back in charge in a meaningful way.

The long-term charts show a range in development, so it is quite likely that over the medium-term, the price will make large movements in both directions. It has been true for a while that when the U.S. Dollar does well, it seems to do particularly well against the Japanese Yen, making this pair an important one to keep an eye on in times of Dollar strength.

USDJPY

There is nothing due today concerning the JPY. Regarding the USD, there will be a release of CPI and 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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