USD/JPY Forex Signal | DailyForex

Last Thursday’s signals were not triggered as none of the key levels were reached that day.

Today’s USD/JPY Signals

Risk 0.75%.

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

Short Trade

  • Short entry following a bearish price action reversal on the H1 time frame immediately upon the next touch of 110.29.
  • 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 Trades

  • Long entry following a bullish price action reversal on the H1 time frame immediately upon the next touch of 109.81, 109.50, or 109.07.
  • 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 Thursday that it seemed that the price was bottoming out above the support just above 109.00. I thought that that if the price could get established above 109.80, it would be much more likely to rise to make another attempt at 110.29, which could provide a potentially excellent short trade entry.

My analysis was correct, although it took longer than the next day to play out.

We see this pair now with no trend really, having just made a bearish turn at 110.29 that looks very solid. The price will now probably fall to test the next support at 109.81 but the support level at 109.50 looks more likely to be strong, so I would take a bullish bias if we get a firm bounce at that level later after a retracement.

USD/JPY Forex Signal | DailyForex

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

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