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 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.