USD/JPY Forex Signal - 15 August 2018

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Yesterday's signals were not triggered, as there was no bearish price action at 111.19.

Today’s USD/JPY Signals

Risk 0.75%.

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

Short Trades

  • Short entry following a bearish price action reversal on the H1 time frame immediately upon the next touch of 111.86.

  • 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.

  • 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 Trade

  • Long entry following a bullish price action reversal on the H1 time frame immediately upon the next touch of 111.14.

  • 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.

  • 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 it looked as if movement here is going to be limited until there is a bullish break above 111.19. We did get that break, and we see new support close by at 111.14, and these are bullish signs. However, the price is still struggling to rise, as both currencies remain relatively strong. I take a weakly bullish bias today above 111.14, in line with the long-term bullish trend in the price. The fact that the price is remaining above the former bearish channel is also a bullish sign.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 and Crude Oil Inventories at 3:30pm.

Adam is a Forex trader who has worked within financial markets for over 12 years, including 6 years with Merrill Lynch. He is certified in Fund Management and Investment Management by the U.K. Chartered Institute for Securities & Investment.