USD/JPY Forex Signal: Going Nowhere

Adam Lemon

It is quite likely neither level will even be reached today, so it may be more fruitful to spend today looking at other currency pairs showing more movement such as the GBP/USD or EUR/USD.

USD/JPY: Yen and Dollar acting equally as safe havens

Yesterday’s signals were not triggered, although the low of the day was only 1 pip higher than the support level at 105.78, as there was no bearish price action at 106.08.

Today’s USD/JPY Signals

Risk 0.75%.

Trades may be entered between 8 am New York time Thursday and 5 pm 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 106.50 or 107.07.
  • Put 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.
  • 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 Ideas

  • Go long following a bullish price action reversal on the H1 time frame immediately upon the next touch of 105.78.
  • Put 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.
  • 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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The yen is a popular asset during turbulent times.

USD/JPY Analysis

I wrote yesterday that this pair did not look attractive to trade, with low volatility and the absence of any firm directional movement.

I thought that scalps from bounces off key levels with close monitoring for exits were probably going to be the best approach.

This was a pretty good call as the price has continued to range with low volatility, after getting very close to the key support level at 105.78. The signals gave no precise trades, but I accurately forecasted the day’s overall situation.

There is really nothing new to say except the price action is starting to look a little more bearish. A sustained break below 105.78 would be a significantly bearish sign.

I think the best approach today will be to look for a long trade from a bullish bounce at 105.78 or a short trade from a bearish reversal at 106.50. However, it is quite likely neither level will even be reached today, so it may be more fruitful to spend today looking at other currency pairs showing more movement such as the GBP/USD or EUR/USD.

USD/JPY

There is nothing of high importance due today regarding either the JPY or the USD.

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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