USD/JPY Forex Signal - 20 November 2017

Last Thursday’s signals identified a very good short trade entry from a bearish rejection of the resistance level at 113.28, although unfortunately it happened an hour or so before the New York open, so it did not qualify as a signal.

Today’s USD/JPY Signals

Risk 0.75%.

Trades must be taken from 8am New York time and 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 112.63 or 113.28.

  • 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 Trades

  • Go long following a bullish price action reversal on the H1 time frame immediately upon the next touch of 111.52 or 111.25.

  • 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

There has been a clear and strengthening bearish pattern taking hold since the second half of this week. It all began from the earlier rejection of the 6-month high price at 114.50. Longer-term charts show this pair is moving in an expanding range, but ultimately going nowhere.

The price action was making this pair look considerably more bearish on Friday. Lots of support has been wiped out. For the time being the round number at 112.00 seems to be holding the price, but a move down to 111.52 where the next key support level sits is very possible. There is no long-term trend so if you are going to trade this pair it makes sense to trade in the direction of the medium-term flow, which is bearish. I have a bearish bias.USDJPY

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

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.