USD/JPY Forex Signal - 10 October 2019

Adam Lemon

USDJPY: Key resistance at 107.63

Today’s USD/JPY Signals

Risk 0.75%.

Trades may only be taken between 8am New York time Thursday and 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 107.63, 108.07, or 108.43.

  • 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.

  • 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 Idea

  • Go long following a bullish price action reversal on the H1 time frame immediately upon the next touch of 106.44.

  • 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.

  • 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

We have no real long-term trend but over the shorter term, the chart below shows a rising wedge whose upper trend line is currently highly confluent with an obvious horizontal resistance level at 107.63. I therefore see a short trade from a bearish reversal back at that level to be the best potential opportunity that may set up today. However, there is a major USD-related data release due later which might push the price anywhere. It could be that release gives a spike up and then a strong sell-off, so it could be worth watching for that also.USDJPYThere is nothing of high importance due today concerning the JPY. Regarding the USD, there will be a release of CPI (inflation) data at 1:30pm.

About the Author
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

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