USD/JPY Forex Signal

Last Thursday’s signals were not triggered, as neither of the key levels were reached that day.

Today’s USD/JPY Signals

Risk 0.75%.

Trades must be entered between 8am New York time Monday and 5pm Tokyo time Tuesday.

Short Trade

  • Short entry following a bearish price action reversal on the H1 time frame immediately upon the next touch of 112.09.

  • Place 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 Trade

  • Long entry following a bullish price action reversal on the H1 time frame immediately upon the next touch of 111.44 or 110.60.

  • Place 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.

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USD/JPY Analysis

I wrote last Thursday that due to the Bank of Japan’s impending monthly guidance trading should continue to be lively, but direction was unpredictable. The resistance at 112.10 had been strong for a long while, so if the price got established above it, I thought that would be a very bullish sign.

As it happened, the Bank of Japan had little impact, and the fact that the price was never even able to reach 112.09 (let alone breach it) was a pointer to a decrease in bullishness. The price now looks heavy and a break below the support level at 111.44 looks likely. This is likely to be today’s pivotal level, so once it breaks down, we are likely to see a further fall which would probably get at least very close to 111.00.USDJPYThere is nothing of high importance due today concerning either the USD or the JPY.

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.