USD/JPY Forex Signal

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Yesterday’s signals were not triggered as none of the key levels were reached.

Today’s USD/JPY Signals

Risk 0.75%.

Trades may only be entered from 8am New York time Thursday and 5pm Tokyo time Friday.

Short Trades

  • Go short following a bearish price action reversal on the H1 time frame immediately upon the next touch of 112.09 or 112.65.

  • 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 Trade

  • Go long following a bullish price action reversal on the H1 time frame immediately upon the next touch of 111.46.

  • 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 there was residual bullishness, but it got weaker and weaker the longer that 112.10 held. If the price gets established below 111.46 that would be a bearish sign that this medium-term bullish move could be over. Alternatively, a real break above 112.10 should see the price continue upwards to 112.65.

Neither resistance nor support have been broken or even touched as the price continues to lowly edge down. The longer this continues, the less and less bullish I get, but bears really need to see a break below 111.46. So, we still await the real move of the week which should happen even if not until the Non-Farm Payrolls data release due Friday. It is interesting that the Yen is not moving much at present.

I would take a bullish bias if the price could trade above 112.10 for a couple of hours.USDJPYThere is nothing of high importance due today concerning either the JPY or the USD.

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.