USD/JPY Forex Signal - 19 July 2018

Yesterday's signals were not triggered as there was insufficiently bullish price action at 112.79.

Today’s USD/JPY Signals

Risk 0.75%.

Trades may only be entered 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 H1 time frame immediately upon the next touch of 113.13.

  • Place 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 run.

Long Trades

  • Go long following a bullish price action reversal on the H1 time frame immediately upon the next touch of 112.51.

  • Place 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 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 the action still looked a little bullish, despite the bearish bounce. I took a bullish bias above 113.13 or if there was a retracement and strongly bullish bounce at 112.79. The price did retrace to 112.79, which held gently, but there was no true bounce and the price fell below it. However, the price has begun rising again in recent hours, in line with the long-term trend, which is hopeful for bulls. I want to see the price get established above 113.13 before I would feel comfortable taking a bullish bias, so I am still holding back from judgement.

USDJPY

There is nothing important 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.