USD/JPY Forex Signal - 19 December 2017

By: DailyForex.com

Yesterday’s signals produced a losing trade from the bullish hourly pin candlestick rejecting the support level identified at 112.47.

 

Today’s USD/JPY Signals

Risk 0.75%.

Trades may only be taken from 8am New York time to 5pm Tokyo time during the next 24 hours.

 

Short Trades

· Short entry following a bearish price action reversal on the H1 time frame immediately upon the next touch of 113.00 or 113.28.

· 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 112.37 or 111.70.

· 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 was right yesterday to suspect that the nearby support was likely to be fragile, as it did not hold. The price did not do much yesterday and this pair remains difficult to trade. Technically, there is still a long-term bullish trend in force, but that probably is not going to help much as there are such wide long-term ranges, the trend means very little. I have no directional bias in this pair now, but I think the most attractive trade set-up which could happen later would be a bearish turn at 113.00.
USDJPY

There is nothing important due today concerning the JPY. Regarding the USD, there will be a release of Building Permits 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.