USD/JPY Forex Signal - 4 July 2019

Adam Lemon

USDJPY: 107.50 still supportive

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 taken from 8am to 5pm Tokyo time Friday.

Short Trade Ideas

  • Go short following a bearish price action reversal on the H1 time frame immediately upon the next touch of 107.94 or 108.14.

  • Put 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 Trade Ideas

  • Go long following a bearish price action reversal on the H1 time frame immediately upon the next touch of 107.50, 107.36, or 107.11.

  • Put 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.

USD/JPY Analysis

I wrote yesterday that the support at the major psychological level of 107.50 looked firm. This was likely to be the day’s pivotal point and we would probably see the dominant ranging conditions continue for another day at least. This was a good call as the price has just ranged above 107.50 over the past day.

As the U.S. has a major public holiday today, trading is likely to be very thin and quiet in this currency pair until Tokyo opens later, when we might see a strong move as this often happens after a major holiday session. There is still a ranging environment but I think a bullish bounce at 107.50 might produce a meaningful move up to the 108.00 area so I would take a bullish bias if we get a firm bounce there in the first few hours after Tokyo opens later, until 107.94 is hit.USDJPYThere is nothing of high importance due today regarding the JPY or the USD. It is a public holiday in the U.S.A.

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

Did you like what you read? Let us know what you think!

exclamation mark

Please make sure your comments are appropriate and that they do not promote services or products, political parties, campaign material or ballot propositions. Comments that contain abusive, vulgar, offensive, threatening or harassing language, or personal attacks of any kind will be deleted. Comments including inappropriate will also be removed.

0 User comments

exclamation mark

Please make sure your comments are appropriate and that they do not promote services or products, political parties, campaign material or ballot propositions. Comments that contain abusive, vulgar, offensive, threatening or harassing language, or personal attacks of any kind will be deleted. Comments including inappropriate will also be removed.

Read more
Add new comment
This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.