USD/JPY Forex Signal: Consolidating Below 108.59 - 31 March 2020

Adam Lemon

USD/JPY: Little price movement

Yesterday’s signals were not triggered as there was insufficiently bearish price action at 108.69.

Today’s USD/JPY Signals

Risk 0.75%.

Trades must be entered from 8am New York time Tuesday until 5pm Tokyo time Wednesday.

Short Trade Ideas

  • Short entry following a bearish price action reversal on the H1 time frame immediately upon the next touch of 108.59, 109.19, or 109.59.

  • Put the stop loss 1 pip above the local swing high.

  • Move the stop loss to break even once the trade is 20 pips in profit.

  • Remove 50% of the position as profit when the trade is 20 pips in profit and leave the remainder of the position to ride.

Long Trade Idea

  • Long entry following a bullish price action reversal on the H1 time frame immediately upon the next touch of 107.02.

  • Put the stop loss 1 pip below the local swing low.

  • Move the stop loss to break even once the trade is 20 pips in profit.

  • Remove 50% of the position as profit when the trade is 20 pips in profit and leave the remainder of the position to ride.

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 yesterday that this pair had moved relatively little compared to other currency pairs, and this looked likely to continue. I was correct about that, although I was wrong to see a downwards move as more likely over the short term.

The price invalided one resistance level, but the higher level at 108.59 has held.

I do not see any great trading opportunities as likely to set up here, even though today is the last day of the month at the end of an extremely volatile month. I would stand aside and wait to see what happens for the time being unless there is an exceptionally attractive bearish price action rejection of 108.59 at about the time markets in New York open.USDJPYThere is nothing of high importance scheduled for today concerning the JPY. Regarding the USD, there will be a release of CB Consumer Confidence 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:
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