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USD/JPY Forex Signal - 2 April 2018

Last Thursday’s signals were not triggered, as there was insufficiently bullish price action at 106.24.

Today’s USD/JPY Signals

Risk 0.75%.

Trades may be entered from 8am New York time until 5pm Tokyo time, over the next 24-hour period only.

Short Trade

  • Short entry following a bearish price action reversal on the H1 time frame immediately upon the next touch of the bearish trend lines very close to 107.00.

  • 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 Trades

  • Long entry following a bullish price action reversal on the H1 time frame immediately upon the next touch of 106.10, 105.90, or 105.26.

  • 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 last Thursday that although there is a long-term bearish trend, this pair is starting to look quite bullish, threatening a very deep bullish retracement or even a major trend change. The bulls have held the price up, although the support has been eaten into a little. The level at 106.10 is still intact and the support below that looks strong, being confluent with the broken bearish trend line at about 105.90. It looks as if the bulls have the upper hand and the price will stay firm, possibly even rising to threaten the area at 107.00 again. A long entry from the nearby support looks like a good bet today, but we may see a major double top form at or very close to the round number at 107.00. I take a bullish bias despite the long-term bearish trend.

USDJPY

There is nothing due today concerning the JPY. Regarding the USD, there will be a release of ISM Manufacturing PMI data at 3pm London time.

Adam Lemon
About Adam Lemon

Adam Lemon began his role at DailyForex in 2013 when he was brought in as an in-house Chief Analyst. Adam trades Forex, stocks and other instruments in his own account. Adam believes that it is very possible for retail traders/investors to secure a positive return over time provided they limit their risks, follow trends, and persevere through short-term losing streaks – provided only reputable brokerages are used. He has previously worked within financial markets over a 12-year period, including 6 years with Merrill Lynch.

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