USD/JPY Forex Signal - 16 July 2018

Last Thursday's signals were not triggered, as none of the key levels were ever reached.

Today’s USD/JPY Signals

Risk 0.75%.

Trades must be taken from 8am New York time to 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 113.13.

  • 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 112.06 or 111.75.

  • 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 last Thursday that this pair had become very bullish, but the upwards movement has tapered off since then. However, the price has not retraced back to the nearest support, and the action cannot truly be called bearish yet, so it makes sense to maintain a bullish bias, with the Japanese Yen looking like the weakest of currencies right now over the medium-term. The psychological level at 112.50 may make its presence felt and prevent much further short-term upwards movement, at least until the New York open later. I have a bullish bias today above 112.00.

USDJPy

There is nothing important due today concerning the JPY. Regarding the USD, there will be a release of Retail Sales 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.