Technical Analysis Free Forex Signals USD/JPY Forex Signal USD/JPY Forex Signal Thursday, 6 December 2018 11:00 Share 0 Tweet 0 Pin it 0 +1 Yesterday’s signals may have produced a profitable short trade from the bearish rejection of the 113.16 area, although the bearish price action was ambiguous with a very small bearish pin candlestick. In any case, the nearest key levels did act to cap both the low and high price of the day. Today’s USD/JPY Signals Risk 0.75%. Trades must be taken between 8am New York time and 5pm Tokyo time over the next 24 hours only. Short Trades Short entry following a bearish price action reversal on the H1 time frame immediately upon the next touch of 113.23 or the descending trend line currently sitting at about 113.44. 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 Trades Long entry following a bullish price action reversal on the H1 time frame immediately upon the next touch of 112.63 or 112.19. 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 the price was in a bearish wedge and the new lower resistance level at 113.16 seemed to be making its presence felt. Therefore, I would be happy to take a bearish bias if the price attempted to rise above 113.16 and failed after the New York open later. However, I advised being very careful of the support at 112.66 dues to its confluence with a trend line as well as the major quarter-number at 112.50. This was a very good call as these price areas capped both end of the who day’s move. The picture remains somewhat bearish, with stock markets nervous again, producing sudden flows into the Japanese Yen as a safe haven. The price channel being a bearish one confirms this technically, yet the 112.50 area may remain as solid support. I would take a bearish bias at a strong reversal at the upper trend line or at 113.23. There is nothing important due today concerning the JPY. Regarding the USD, there will be a release of ISM Non-Manufacturing PMI data at 3pm London time, followed later by a minor speech from the Chair of the Federal Reserve at 11:45pm. Currency Pairs USD/JPY Adam Lemon 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. Learn more from Adam in his free lessons at FX Academy.