USD/JPY Forex Signal: Bullish Consolidation

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USD/JPY: Yen getting weaker over time

Yesterday’s signals were not triggered, as none of the key levels have been reached yet.

Today’s USD/JPY Signals

Risk 0.75%.

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

Short Trade Ideas

  • Go short following a bearish price action reversal on the H1 time frame immediately upon the next touch of 111.82, 112.40, or 112.93.

  • 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 109.49 or 108.50.

  • 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.

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The yen is a popular asset during turbulent times.

USD/JPY Analysis

I wrote yesterday that we still had a bullish consolidation in this currency pair. I saw the USD as likely to strengthen further over the medium term, so I continued to take a weakly bullish bias if the price bounced at any of the identified support levels.

This was a good call as the bullish consolidation has continued, with the 111.50 price area continuing to hold. A little bit higher just above 112.00 we have long-term high prices.

Volatility here is still relatively low but we may be close to a tipping point, with either a stronger bullish movement about to start or a major bearish reversal.

I think the price is most likely to continue to rise, but I would take trades in either direction from a reversal at a key level. Long trades probably have a slightly higher chance of success.USDJPYThere is nothing of high importance scheduled for today concerning either 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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