USD/JPY Forex Signal - 26 November 2018

Last Wednesday’s signals were not triggered as there was no bearish price action at 113.05.

Today’s USD/JPY Signals

Risk 0.75%.

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

Short Trade

  • Go short following a bearish price action reversal on the H1 time frame immediately upon the next touch of 113.66.

  • 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 113.14 or 112.75.

  • 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 last Wednesday that we seemed to have begun a short-term bullish trend, breaking above the former resistance level at 112.66 and then using it as new, higher support. I still saw this pair as generally dangerous to trade due to the ranging environment which prevailed. I was correct insofar as the price went on to make generally higher prices, although not by a lot.

The situation now looks more bullish, with a medium-term bullish price channel and new higher support at 113.14. If there no more sharp drops in stock markets, it seems likely that the price will rise from here. I take a cautiously bullish bias above 113.40.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.