USD/JPY Forex Signal

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USDJPY: More bullish above 107.26

Yesterday’s signals were not triggered, as there was no bearish action at either 107.21 or 107.26.

Today’s USD/JPY Signals

Risk 0.75%.

Trades must be taken from 8am New York time Tuesday until 5pm Tokyo time Wednesday.

Short Trade Ideas

  • Go short following a bearish price action reversal on the H1 time frame immediately upon the next touch of 107.57, 107.79, or 107.99.

  • 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.

  • 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

  • Go long following a bullish price action reversal on the H1 time frame immediately upon the next touch of 107.26, 107.21, or 106.72.

  • 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.

  • 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 yesterday that now that the resistance at 106.72 had been broken, the price was weakly bullish, but the break was significant. As risk sentiment improves, I thought that the price here should slowly rise. This was a good call, as the price now is not only higher, it has also broken up beyond the former resistance area from 107.21 to 107.26 which now seems to be acting as new higher support, which is an additional bullish sign.

The price has reached a new 1-month high and the Yen is beginning to look weak. The technical picture points to still higher prices, as long as 107.21 holds. However, bulls will need to watch out for the cluster of three resistance levels below 108.00.

I would take a bullish bias later on this pair if we get a bullish bounce as the support at 107.21 holds.USDJPYThere is nothing of high importance due today concerning either the USD or the JPY.

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.