USD/JPY Forex Signal: Still Bearish Below 108.24 - 30 March 2020

Adam Lemon

USD/JPY: Yen stronger

Last Thursday’s signals were not triggered as there was no bullish price action at either 109.49 or 108.50.

Today’s USD/JPY Signals

Risk 0.75%.

Trades may only be taken between 8am New York time Monday to 5pm Tokyo time Tuesday.

Short Trade Ideas

  • Go short following a bearish price action reversal on the H1 time frame immediately upon the next touch of 108.24 or 108.59.

  • 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 107.02 or 105.21.

  • 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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USD/JPY Analysis

I wrote last Thursday that I was prepared to take a long trade at bullish bounces at either 109.50 or 108.50, or a short trade at a bearish reversal from 110.76, if any of these scenarios set up today. Neither did, so this was enough to keep out of trouble, but I was wrong in that I expect the USD to hold up and not weaken like it did.

This pair has moved relatively little compared to other currency pairs, and this looks likely to continue. There is no strong trend on any time frame, and it is difficult to predict the next significant directional move here. There is support near the round number below at 107.00 but I fear it might not be strong if tested. This means that the line of least resistance may be downwards, but I would avoid trading this pair for the time being.USDJPYThere is nothing of high importance scheduled for 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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