USD/JPY Forex Signal - 4 June 2018

Last Thursday’s signals were not triggered, as neither of the key levels were reached that day.

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 Trade

  • Short entry following a bearish price action reversal on the H1 time frame immediately upon the next touch of 110.40.

  • 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 Trades

  • Long entry following a bullish price action reversal on the H1 time frame immediately upon the next touch of 109.07 or 108.05.

  • 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 last Thursday that I had no directional bias, and I would stand aside from this pair. This was a good call, as this pair just consolidated that day. However, since then it has broken strongly above 109.00, forming a new obvious support level at 109.07. There is a reasonably long-term bullish trend, so we should be close to a situation where it would make sense to take a bullish bias. The problem is that the area around the big round number at 110.00, although not a key pivotal point, seems likely to halt any advance, at least for a while. This means that the upside potential is probably limited, although a strongly bullish bounce at a retracement to 109.07 could be an interesting long trade entry later.

USDJPY

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

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.