USD/JPY Forex Signal | DailyForex

Last Thursday’s signals were not triggered, as there was no bullish price action when the price reached 111.70 or 111.58.

Today’s USD/JPY Signals

Risk 0.75%.

Trades must be entered between 8am New York time Monday and 5pm Tokyo time Tuesday.

Short Trades

  • Go short following a bearish price action reversal on the H1 time frame immediately upon the next touch of 111.79 or 112.10.
  • 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 111.38 or 111.23.
  • 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 last Thursday that as long as 111.70 held up, we still had a chance for another push above 112.10 and a true bullish break. A break below 1.1170 was less interesting for bears as there were a few support levels close by: the line of least resistance looked to be upwards if 112.10 could be overcome.

This was a good call, as the bearish scenario played out, but I was right to suspect there wouldn’t be a lot in it as the residual bullishness would hold the price up quite a lot. However, it is also true that we have lower resistance at 111.79 which is holding, and we may now be seeing a bearish double top there.

There is a weak long-term bullish trend, but it is very weak. It is also a holiday in Japan which means that volatility is quite likely to be below average. For these reasons I see little opportunity in this currency pair except for scalping a few pips off bounces rejecting key levels.

USD/JPY Forex Signal | DailyForex

There is nothing important due today concerning either the JPY or the USD. It is a public holiday today in Japan.

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