USD/JPY Forex Signal - 16 May 2019

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USDJPY: Japanese Yen remains strong but may be topping out

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

Today’s USD/JPY Signals

Risk 0.75%.

Trades must be entered from 8am New York time Thursday until 5pm Tokyo time Friday.

Short Trade

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

  • 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 the action here was starting to look more bearish over the short term.

I was ready to take a bearish bias later if the price could spend two hours below 109.07, or if there was a failure at a test of 110.29. Neither of these scenarios played out.

Although I was more bearish yesterday, it seems that the price is bottoming out above the support just above 109.00. I think now that if the price can get established above 109.80, it would be much more likely to rise to make another attempt at 110.29, which could provide a potentially excellent long trade entry.USDJPYThere is nothing of high importance due today concerning either the JPY or the USD.

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.
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