USD/JPY Forex Signal - 11 July 2018

Yesterday's signals produced a profitable long trade from the bullish outside candlestick which rejected the support level identified at 110.79.

Today’s USD/JPY Signals

Risk 0.75%.

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

Short Trades

  • Short entry following a bearish price action reversal on the H1 time frame immediately upon the next touch of 111.41 or 111.75.

  • Put 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 ride.

Long Trades

  • Long entry following a bullish price action reversal on the H1 time frame immediately upon the next touch of 110.79 or 110.55.

  • Put 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 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 bullish bias. In fact, the price consolidated above the nearby support before breaking down suddenly just before the Asian session on news that the U.S. was threatening more tariffs on Chinese imports. The price recovered quickly however, bouncing reliably at the support, and in recent minutes as at the time of writing seems to be breaking above the resistance level at 111.17, which might now become support, although it is too recent to be reliable. Considering the recent strongly bullish move to new highs, and the weak but real long-term bullish trend, I take a bullish bias today and think we are likely to see new highs after the New York open later.USDJPY

There is nothing important due today regarding the JPY. Regarding the USD, there will be a release of Crude Oil Inventories data at 3:30pm 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.