USD/JPY Forex Signal - 3 December 2018

Last Thursday’s signals were not triggered as there was no bearish price action at 113.42.

Today’s USD/JPY Signals

Risk 0.75%.

Trades must be entered before 5pm Tokyo time, after 8am New York time today.

Short Trade

  • Go short following a bearish price action reversal on the H1 time frame immediately upon the next touch of 114.18.

  • 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 Thursday that although there was short-term bearish momentum, we should look to see what happened when 113.14 was reached. This level was never reached, and the price has done little ever since. The bullish trend line continues to hold but the price is effectively consolidating, and we also have the beginning of a triangular trend line structure which seems to confirm that. As both the Dollar and Yen are “risk-off” assets while riskier assets are getting a boost, we see little action here, so this pair is probably best avoided in the current sentiment environment. I have no directional bias.

USDJPY

There is nothing important due today concerning the JPY. Regarding the USD, there will be a release of ISM Manufacturing PMI data at 3pm London time.

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.