USD/JPY Forex Signal - 8 July 2019

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USDJPY: Ranging between 107.50 and 108.75

Last Thursday’s signals were not triggered, as there was no bearish price action at 107.94.

Today’s USD/JPY Signals

Risk 0.75%.

Trades may only be entered prior to 5pm Tokyo time Tuesday.

Short Trade Ideas

  • Short entry following a bearish price action reversal on the H1 time frame immediately upon the next touch of 108.75 or 109.07.

  • Place 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 Trade Ideas

  • Long entry following a bullish price action reversal on the H1 time frame immediately upon the next touch of 108.28, 108.14, 108.06, or 107.94.

  • Place 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 last Thursday that there was still a ranging environment, but I thought that a bullish bounce at 107.50 might produce a meaningful move up to the 108.00 area so I was ready to take a bullish bias if that had happened, until 107.94 is hit. This was a relatively good call, as the price got to a low about 5 pips away from 107.50 before rising strongly.

We basically have a ranging, trendless environment in this currency pair, between about 107.50 and 108.75. This would indicate fading the extremes of this range, but with the U.S. stock market making a new all-time high price last week, I am more inclined to be bullish on this pair, so I see bounces at support levels as likely to be the best option. We have a new higher support level at 108.28 which has given a strong bounce.

If the price can gest established above 108.75 later, that would be a very bullish sign.USDJPYThere is nothing of high importance due today regarding 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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