USD/JPY Forex Signal

Last Thursday’s signals were not triggered, as there was no bearish price action at 111.63.

Today’s USD/JPY Signals

Risk 0.75%.

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

Short Trades

  • Short entry following a bearish price action reversal on the H1 time frame immediately upon the next touch of 111.54 or 112.10.
  • 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 Trades

  • Long entry following a bullish price action reversal on the H1 time frame immediately upon the next touch of 111.21, 110.88, or 110.54.
  • 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 I was still mildly bullish, looking for a bullish sign at a break above 111.63 or a very bullish sign from a break above 112.10. I was right insofar as the price continued to advance and broke above 111.63 but has fallen from the highs around 111.80 which are near long-term highs. The fall was relatively sharp and there is new lower resistance. However, the picture still looks basically bullish as the price trades within a medium-term bullish price channel which is shown in the chart below. I would take a bullish bias if we get a retrace to 111.21 and a strong bullish bounce there.

usdjpy

There 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.