USD/JPY Forex Signal: Wide Bullish Price Channel

Adam Lemon

USD/JPY: Weakly bullish with strong USD

Yesterday’s signals were not triggered, as the price was already below the support level identified at 107.59 when New York opened.

Today’s USD/JPY Signals

Risk 0.75%.

Trades must be entered from 8am New York time Thursday to 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 108.04, 108.21, or 108.59.

  • 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 Ideas

  • Go long following a bullish price action reversal on the H1 time frame immediately upon the next touch of 107.59 or the lower price channel trend line shown in the price chart below which is currently sitting at about 107.21.

  • 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.

Advertisement
The yen is a popular asset during turbulent times.

USD/JPY Analysis

I wrote yesterday that the technical picture had become less bullish but I was prepared to take long trades from bullish bounces at 107.59 or at the lower trend line of the former price channel, as well as another short trade from 108.04.

Neither of these potential trades set up.

It has now become more obvious that the price is moving within a wide, symmetrical bullish channel.

The USD is strong today, although the JPY is not especially weak.

The price action is a little confusing over the short term, but there is no reason not to have some faith in this bullish price channel.

I will take a bullish bias if get a firm bullish bounce at either 107.59 or the channel’s lower trend line shown in the price chart below which is currently sitting at about 107.21.USDJPYRegarding the USD, there will be a release of Flash Manufacturing PMI at 2:45pm London time followed by the Chair of the Federal Reserve giving a minor speech at 7:30pm. Concerning the JPY, the Bank of Japan will be releasing its Monetary Policy Statement late in the Tokyo session.

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:
Comments

Did you have a good experience with this broker? A bad one? Tell our team and traders worldwide about your experience in our User Reviews tab. Your email address will not be posted.

exclamation mark

Please make sure your comments are appropriate and that they do not promote services or products, political parties, campaign material or ballot propositions. Comments that contain abusive, vulgar, offensive, threatening or harassing language, or personal attacks of any kind will be deleted. Comments including inappropriate will also be removed.

0 User comments
Add Comment

exclamation mark

Please make sure your comments are appropriate and that they do not promote services or products, political parties, campaign material or ballot propositions. Comments that contain abusive, vulgar, offensive, threatening or harassing language, or personal attacks of any kind will be deleted. Comments including inappropriate will also be removed.

Read more
Add new comment
This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.