USD/JPY Forex Signal - 24 January 2019

Yesterday’s signals were not triggered, as the bullish price action took place a few pips below 109.48.

Today’s USD/JPY Signals

Risk 0.75%.

Trades may only be taken from 8am New York time until 5pm Tokyo time today.

Short Trades

  • Short entry following a bearish price action reversal on the H1 time frame immediately upon the next touch of 110.04 or 110.52.
  • Put 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

  • Long entry following a bullish price action reversal on the H1 time frame immediately upon the next touch of 109.44, 109.15, or 108.73.
  • Put 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 the picture here was very mixed, with a long-term bearish trend and a medium-term bullish trend, while the short-term shows uncertain direction. This meant that the best approach was probably to trade any short-term rejection of a key support or resistance level for conservative profits. This was a good call insofar as the price has essentially moved sideways over the past day.

There is no change, the price is still going sideways and seems likely to consolidate between the new support at 109.44 and the resistance just above 110.00. The latter might be especially strong as it is confluent with a major round number. So, the best approach today will probably be as it was yesterday – just look for conservative profits off strong rejections of key levels in either direction.

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There is nothing of high importance due today regarding either the USD or the JPY.

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.