USD/JPY Forex Signal - 5 November 2019

Adam Lemon

Yesterday’s signals were not triggered, as there was no bearish price action when 108.50 and 108.79 were reached.

Today’s USD/JPY Signals

Risk 0.75%.

Trades may only be entered between 8am New York time Tuesday and 5pm Tokyo time Wednesday. 

Short Trade Idea

⦁ Go short following a bearish price action reversal on the H1 time frame immediately upon the next touch of 109.00 or 109.48.

⦁ 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 Ideas

⦁ Go long following a bullish price action reversal on the H1 time frame immediately upon the next touch of 108.75, 108.65, or 108.30.  

⦁ 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

I wrote yesterday that although we were seeing bullish signs, and the bullish case for this currency pair was strengthened by the fact that the S&P 500 stock index was rising to hit new all-time highs, which typically pulls this currency pair along with it, I saw the price here as evenly balanced between 108.30 and 108.50 with no clear direction ahead. This was not a great call I should have taken more faith from the bullish signs I mentioned.

The picture is now considerably more bullish, and it seems as if the bulls are again going to drive the price up to test this long-term pivotal round number at 109.00 which is close by. We already have a long-term triple top there. A bullish breakout above 109.00 could be explosive as it has been building up for a long time. Alternatively, another failure there could see a medium-term downwards move of perhaps 200 pips, so it is a pivotal point worth watching.

I would take a bullish bias on this pair later if New York closes today above 109.00.USDJPYThere is nothing of high importance due today concerning the JPY. Regarding the USD, there will be a release of ISM Non-Manufacturing PMI data at 3pm London time.
 

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

Currency Pairs:
Comments

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
Add Comment

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.