Technical Analysis Free Forex Signals USD/JPY Forex Signal - 6 March 2018 USD/JPY Forex Signal - 6 March 2018 Tuesday, 6 March 2018 10:34 Share 0 Tweet 0 Pin it 0 +1 Yesterday’s signals were not triggered, as there was no bearish price action at 105.98. Today’s USD/JPY Signals Risk 0.75%. Trades must be taken between 8am New York time and 5pm Tokyo time, over 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 106.44 or the bearish trend line shown in the price chart below which is currently sitting at about 106.67. 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. 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 105.94. 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. 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 I wrote yesterday that a bearish bias made sense, but the price turned around and rose in line with the recovery in stock prices. It is notable how the USD/JPY pair often fluctuates in line with major equity indices such as the S&P 500 with a rise in the Yen positively correlated with a fall in stocks. The technical picture is still dominated by a major long-term bearish trend line which remains unbroken, as shown in the price chart below. There is a new obvious resistance level at 106.44 but also a higher support level at 105.97 which is confluent with the round number at 106.00. As there is no news due today we are quite likely to just see a consolidation within this price area over the next 24 hours, so I have no directional bias. The long-term trend is bearish, which suggests that the better trades in terms of maximum potential reward are likely to be on the short side. There is nothing due today concerning 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.