USD/JPY Forex Signal

11 October 2017 7:59:33 AM

Yesterday’s signals were not triggered, as there was no bullish price action at 112.29 during the specified time session.

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.

Open trades should be protected by 6:30pm.

Short Trades

  • Go short following a bearish price action reversal on the H1 time frame immediately upon the next touch of 112.49 or 112.77.

  • Put the stop loss 1 pip above the local swing high.

  • Move 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 ride.

Long Trade 1

  • Go long following a bullish price action reversal on the H1 time frame immediately upon the next touch of 111.52.

  • Put the stop loss 1 pip below the local swing low.

  • Move 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 ride.

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 is relatively flat and ranging, but yesterday did see a significant technical development in this pair, with the former support level at 112.29 becoming invalidated. The price has started to swing down, albeit in a cramped style, printing new resistance levels at 112.77 and, significantly, at the psychological level of 112.50. The evidence points towards lower prices soon, but as the price has ranged here for a while, it is hard to foresee a breakout. A spike following the FOMC release which then fades back into the range looks like being the most likely scenario.

There is no long-term trend and I am too nervous to have any firm directional bias on this pair right now.USDJPY

There is nothing significant due today concerning the JPY. Regarding the USD, there will be a release of the FOMC Meeting Minutes at 7pm 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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