USD/JPY Forex Signal - 7 November 2019

Adam Lemon

USDJPY: Trade deal boost for bulls? 

 

Yesterday’s signals produced a nicely profitable trade near the end of the Asian session: a long trade entry from the bullish inside candlestick breakout which rejected the support level at 108.65. Profits should be taken near 109.00 to take off the risk, or now, and then further profits can be taken if and when the price falters near higher resistance levels.

Today’s USD/JPY Signals

Risk 0.75%.

Trades may only be entered 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 109.21, 109.48, or 109.96.

⦁ 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 108.82, 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 I was still taking a bullish bias, with long trades from bounces at any of the nearby support levels look like being the best opportunities here. This was a good call despite the strong bearish retracement, with the price bouncing with strong bullish momentum from the support level I identified at 108.65.

I would still look for another long if we get a retracement to the two nearest support levels, but shorts from 109.21 could also be interesting. If the price ends the week above 109.21, that would be a very important long-term bullish sign.USDJPYThere is nothing of high importance due today concerning either the JPY or the USD.

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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