USD/JPY Forex Signal
|Yesterday’s signals were not triggered, as none of the key levels were ever reached.
Today’s USD/JPY Signals
Risk 0.75%.
Trades may only be taken between 8am New York time and 5pm Tokyo time, over the next 24 hours
Short Trade
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Go short following a bearish price action reversal on the H1 time frame immediately upon the next touch of 109.85.
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Put the stop loss 1 pip above the local swing high.
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Move the stop loss to break even once the trade is 20 pips in profit.
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Take off 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
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Go long following a bullish price action reversal on the H1 time frame immediately upon the next touch of 108.05.
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Put the stop loss 1 pip below the local swing low.
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Move the stop loss to break even once the trade is 20 pips in profit.
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Take off 50% of the position as profit when the price reaches 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
There is a long-term bearish trend, and the Yen is one of the relatively strong currencies over the short term too. However, the micro picture is complex, as although we have had a bullish break above a resistant trend line which may now be acting as support, we also had a rejection of the area above 109.00, which was a more bearish sign. If the price does not move down to break below 108.50 soon, it will become more likely to make a more decisive bullish reversal, with no obvious obstacle to stop its rise all the way to 109.50 or even higher. Right now, I have a slightly bearish bias.
Regarding the USD, there will be a release of CB Consumer Confidence data at 3pm London time, and President Trump will be delivering a state of the union address at 2am. There is nothing important due today concerning the JPY.
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