USD/JPY Forex Signal - 16 August 2018

Adam Lemon

Yesterday's signals were not triggered, as there was no bullish price action at 111.14.

Today’s USD/JPY Signals

Risk 0.75%.

Trades may only be taken between 8am New York time and 5pm Tokyo time, during the next 24-hour period.

Short Trades

  • Go short following a bearish price action reversal on the H1 time frame immediately upon the next touch of 111.14 or 111.86.

  • 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.

  • 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

  • Go long following a bullish price action reversal on the H1 time frame immediately upon the next touch of 110.45 or 110.00.

  • 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.

  • 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 took a weakly bullish bias above 111.14, in line with the long-term bullish trend. I also saw the fact that the price was remaining above the former bearish channel is also a bullish sign. However, the Yen shortly began to strengthen, even against the Dollar, on trade war fears, which then later eased, sending the price up again.

The technical picture is now messy, but arguably very slightly bearish with a recent key higher low and higher high. Unfortunately, the swings are so wide that this is difficult to trade anyway in a single direction.

This pair is likely to remain a challenge, but I would take a weakly bullish bias here if the price could get established above the resistance level at 111.14.USDJPY

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

About the Author
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.
Learn more from Adam in his free lessons at FX Academy

Currency Pairs:
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