Technical Analysis Free Forex Signals USD/JPY Forex Signal - 6 February 2018 USD/JPY Forex Signal - 6 February 2018 Tuesday, 6 February 2018 8:35 Share 0 Tweet 0 Pin it 0 +1 Yesterday’s signals were not triggered, as there was no bullish price action at 109.83 or 109.09. Today’s USD/JPY Signals Risk 0.75%. Trades may only be taken between 8am New York time and 5pm Tokyo time, over the next 24 hours. Short Trades Go short following a bearish price action reversal on the H1 time frame immediately upon the next touch of 109.00, 109.24, or 109.72. 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 Go long following a bullish price action reversal on the H1 time frame immediately upon the next touch of 108.05. 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 price reaches 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 My bullish bias yesterday turned out to be completely wrong, with the Yen gaining strongly in sync with the strong sell-off in the U.S. stock market followed by a later sell-off in Asian markets. The price got all the way down to the area below 109.00 which has seen all the recent key swing lows and as such is generally supportive. The move down produced several clear new resistance levels, with the lowest level being confluent with the round number at 109.00. This level is being tested at the time of writing, and if the price cannot move above 109.24, we are likely to see a further drop and a test of these long-term low prices above 108.00. There may be a great short trade set-up if the price fails at 109.24 close to the New York open, in line with the long-term bearish trend. On the other hand, stocks tend to recover the day after such sharp falls, which might limit or prevent any further downwards movement in this currency pair. There is nothing due today concerning either the JPY or the USD. Currency Pairs USD/JPY Adam Lemon 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.