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USD/JPY Forex Signal - 9 May 2018

Yesterday’s signals were not triggered, as the bearish price action took place a few pips above 109.52.

 

Today’s USD/JPY Signals

Risk 0.75%.

Trades must 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 110.52.

* Place 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.

* 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 Trade

* Long entry following a bullish price action reversal on the H1 time frame immediately upon the next touch of 109.00.

* Place 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.

* Remove 50% of the position as profit when the trade is 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

I wrote yesterday that I had no confidence in forecasting today’s direction generally, especially in this currency pair. Although this pair has been very flat, what has happened is that the price has been slowly squeezed upwards by breaks and holds of competing trend lines – we can see the floor established close to the round number at 109.00 in the price chart below. The price has now run into key resistance just above 109.50. If it gets established above that area before New York opens, that would be a bullish sign, but beyond that, it is hard to make any calls beyond “weakly bullish”, I would even say “very weakly bullish”. This is not a pair I could trade today with much confidence. There will probably be better opportunities in the EUR/USD and GBP/USD currency pairs.usdjpy

There is nothing due today concerning the JPY. Regarding the USD, there will be a release of PPI data at 1:30pm London time, followed by Crude Oil Inventories at 3:30pm.

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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