USD/JPY Forex Signal | DailyForex

Yesterday’s signals produced a profitable long trade from the bullish doji candlestick on the hourly chart which rejected the support level at 109.07.

Today’s USD/JPY Signals

Risk 0.75%.

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

Short Trades

  • Go short following a bearish price action reversal on the H1 time frame immediately upon the next touch of 110.29 or 110.88.
  • 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 Trades

  • Go long following a bullish price action reversal on the H1 time frame immediately upon the next touch of 109.07 or 108.73.
  • 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.

USD/JPY Analysis

I wrote yesterday that it looked likely that market sentiment would continue to be risk-off for a while, which should keep the bears in control of this currency pair. I would take a bearish bias if there was a retest and strong bearish failure of 110.29 later.

We did not get the retest of 110.29 but I was correct in seeing the most potential for bears as the price continued to trade lower to make a low just above 109.00, before bouncing strongly at the support level there.

The price has made up a lot of ground but will not test any resistance levels even if it rises further until it reaches 110.29.

The long-term bearish trend remains technically in force below 110.29, but the price does not look bearish on the shorter time frames yet.

I would take a bearish bias if the price retests 110.29 and fails to break above that level while printing some bearish price action.

USD/JPY Forex Signal | DailyForex

There is nothing important due today concerning either the JPY or the USD.

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