Technical Analysis Free Forex Signals USD/JPY Forex Signal - 7 February 2018 USD/JPY Forex Signal - 7 February 2018 Wednesday, 7 February 2018 10:34 Share 0 Tweet 0 Pin it 0 Yesterday’s signals produced a good short trade entry from the bearish inside candlestick rejecting the resistance level identified at 109.72. Today’s USD/JPY Signals Risk 0.75%. Trades must be entered from 8am New York time until 5pm Tokyo time, during the next 24 hours. Short Trade Short entry following a bearish price action reversal on the H1 time frame immediately upon the next touch of 109.72. 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 109.00 or 108.05. 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 price reaches 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 only think I was right about yesterday was in suggesting a break above 109.24 would lead to higher prices. The move turned around almost to the pip at the predicted resistance level of 109.72, and at the time of writing is just reaching anticipated support at 109.00. It is hard not to be bearish, as there is a long-term bearish trend and the price is moving within a clear bearish channel, admittedly with wide swings in both directions. Yet the durability of the lows above 108.00 should worry bears. There is nothing due today concerning the JPY. Regarding the USD, there will be a release of Crude Oil Inventories data at 3:30pm London time. 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.