USD/JPY Forex Signal - 10 October 2017

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

Today’s USD/JPY Signals

Risk 0.75%.

Trades must be taken between 8am New York time and 5pm Tokyo time, over the next 24-hour period only.

Short Trade 1

• Short entry following a bearish price action reversal on the H1 time frame immediately upon the next touch of 113.71.
• 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 112.29.
• 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 price remains very flat and lifeless. This condition was expected during yesterday’s American holiday, but with other markets coming online there has still been no change. The zoomed-out chart below shows the price is just consolidating above the support at 112.29. This indicates a very muted bullishness, at least until there is a real break below 112.29. I maintain a slight bullish bias, even though there is no long-term trend, but it really looks as if there are going to be better opportunities elsewhere today, with European currencies showing more volatility right now. The best trade that might set up today in this pair would most probably be a long trade from a bullish bounce at 112.29.

There is nothing significant due today concerning either the JPY or the USD.