USD/JPY Forex Signal - 22 April 2019

Adam Lemon

Last Thursday’s signals were not triggered, as none 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

  • Go short following a bearish price action reversal on the H1 time frame immediately upon the next touch of 112.10.
  • 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

  • Go long following a bullish price action reversal on the H1 time frame immediately upon the next touch of 111.87, 111.58, or 111.23.
  • 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

Last Thursday I wrote that this pair was looking more bullish as it tested strong long-term resistance at 112.10. The price had sold off from there, signifying that we might be printing a bearish double top there, but if the price got established above it and reached new multi-month highs, then that would be a very bullish sign and I would take a bullish bias.

It was a good call to see this area as very pivotal, as it has continued to hold and has become a very major line in the sand. There is also selling from the round number at 112.00. I feel even more strongly now that a sustained break above 112.10 would be a very important and significant bullish sign, and I would gladly take a bullish bias above there if such a break happens on above-average volatility.

On the short side, I don’t have much confidence, as there are several support levels close below, which would surely take quite a while to be broken down.

usdjpy

There is nothing important due today concerning either the JPY or the USD.

About the Author
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.
Learn more from Adam in his free lessons at FX Academy

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