USD/JPY Forex Signal - 14 May 2019

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Yesterday’s signals produced a profitable long trade from the bullish doji candlestick on the hourly chart which rejected the support level at 109.07.

Today’s USD/JPY Signals

Risk 0.75%.

Trades must be entered from 8am New York time Tuesday to 5pm Tokyo time Wednesday.

Short Trades

  • Go short following a bearish price action reversal on the H1 time frame immediately upon the next touch of 110.29 or 110.88.
  • 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 109.07 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.

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USD/JPY Analysis

I wrote yesterday that it looked likely that market sentiment would continue to be risk-off for a while, which should keep the bears in control of this currency pair. I would take a bearish bias if there was a retest and strong bearish failure of 110.29 later.

We did not get the retest of 110.29 but I was correct in seeing the most potential for bears as the price continued to trade lower to make a low just above 109.00, before bouncing strongly at the support level there.

The price has made up a lot of ground but will not test any resistance levels even if it rises further until it reaches 110.29.

The long-term bearish trend remains technically in force below 110.29, but the price does not look bearish on the shorter time frames yet.

I would take a bearish bias if the price retests 110.29 and fails to break above that level while printing some bearish price action.

usdjpy

There is nothing important 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.