USD/JPY Forex Signal

Thursday, 8 February 2018 8:24

Yesterday’s signals were not triggered, as the bullish bounce at the support level identified at 109.00 took place before the New York open.

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 110.52 or the lower descending trend line shown in the price chart below which is currently sitting at 110.14.

  • 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 109.00.

  • 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

I wrote yesterday that 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. This seems like a correct approach to me still, as over the past 24 hours we have seen ranging conditions prevails and both key support and resistance levels hold. There is clearer direction in the European currency pairs, while the Yen has some strength in the current unsettled market environment. This means that if you are going to trade this pair, being ready to take fast rejections from key levels and being conservative on profit targets is probably going to be the best strategy. I have no directional bias beyond saying that a downwards movement over the coming hours can logically be expected as the price has just reached a resistant area.

USDJPY

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

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.

DailyForex Newsletter
0 User Reviews

Registration is required to ensure the security of our users. Login via Facebook to share your comment with your friends, or register for DailyForex to post comments quickly and safely whenever you have something to say.

Log in | Create a DailyForex.com Account Now