Affiliate Disclosure
Affiliate Disclosure DailyForex.com adheres to strict guidelines to preserve editorial integrity to help you make decisions with confidence. Some of the reviews and content we feature on this site are supported by affiliate partnerships from which this website may receive money. This may impact how, where and which companies / services we review and write about. Our team of experts work to continually re-evaluate the reviews and information we provide on all the top Forex / CFD brokerages featured here. Our research focuses heavily on the broker’s custody of client deposits and the breadth of its client offering. Safety is evaluated by quality and length of the broker's track record, plus the scope of regulatory standing. Major factors in determining the quality of a broker’s offer include the cost of trading, the range of instruments available to trade, and general ease of use regarding execution and market information.

USD/JPY Forex Signal: Bearish Below 107.00 - 30 April 2020

I thought that there was probably greater potential on the short side, so I was ready take a bearish bias if we had gotten two consecutive hourly closes below 107.00.

USD/JPY: USD is weak across the board

Last Tuesday’s Signals were not triggered, as there was no bullish price action when the support level identified at 107.02 was reached.

Today’s USD/JPY Signals

Risk 0.75%.

Trades must be entered from 8am New York time Thursday until 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 107.02 or 107.34.
  • Place 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.
  • 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 Idea

  • Go long following a bullish price action reversal on the H1 time frame immediately upon the next touch of 105.21.
  • Place 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.
  • 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 last Tuesday that I thought that the round number at 107.00 would be very pivotal and could be traded long if it held, or short following a breakdown. I thought that there was probably greater potential on the short side, so I was ready take a bearish bias if we had gotten two consecutive hourly closes below 107.00.

This was a good call, although the break below 107.00 happened quickly and strongly, so my entry point at 106.67 only produced a maximum of 30 pips of profit.

The USD is weak everywhere and the Yen is one of the stronger currencies technically, as we see this pair breaking to new multi-week low prices below 107.00.

The price has made a bullish retracement, but it looks normal, so technically we can expect another test of the lows made recently as long as the price remains below 107.34 and that resistance level holds. The price has plenty of room to fall as there are no key support levels above 105.21. I would be very happy to take a short trade from a bearish reversal at 107.34 if this sets up later today.

USD/JPY

Regarding the USD, there will be a release of Unemployment Claims data at 1:30pm London time. There is nothing of high importance due today concerning the JPY.

Adam Lemon
About 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.

 

Most Visited Forex Broker Reviews