USD/JPY Forex Signal - 10 May 2018

Por: DailyForex

Yesterday’s signals were not triggered, as none of the key levels were ever reached.

Today’s USD/JPY Signals

Risk 0.75%.

Trades may only be taken between 8am New York time and 5pm Tokyo time, during the next 24-hour period

Short Trade  

  • Go short following a bearish price action reversal on the 1H1 time frame H1H1H1 time frame immediately upon the next touch of 110.52.  
  • Put 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 1H1 time frame H1H1H1 time frame immediately upon the next touch of 109.58. 
  • Put 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 I had a “very weakly bullish” bias. The price has moved up and is now looking more bullish, but is currently testing the major round number at 110.00 which might effectively act as a cap. The action has effectively flipped the area of resistance just above 109.50 to become support, and the price has based there nicely before moving up again. It makes sense to be bullish, although it is quite possible that the level at 110.00 will more or less hold until the U.S. inflation data release is due later. If the number is stronger than expected, the price could really take off and hit 110.50 or even 111.20.

USD/JPY

There is nothing due today concerning the JPY. Regarding the USD, there will be a release of CPI data at 1:30pm London time. 

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.