USD/JPY Forex Signal
|Last Thursday's signals were not triggered, as the bullish price action took place a little below the support level identified at 110.80.
Today’s USD/JPY Signals
Risk 0.75%.
Trades must be entered from 8am New York time until 5pm Tokyo time, over the next 24-hour period only.
Short Trades
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Short entry following a bearish price action reversal on the H1 time frame immediately upon the next touch of 110.45 or 111.14.
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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 run.
Long Trade
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Long entry following a bullish price action reversal on the H1 time frame immediately upon the next touch of 110.00.
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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 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 noted last Thursday that the price was technically constrained within a bearish price channel, and this situation persisted for the rest of the week. The Turkish crisis began to dominate the Forex market, producing a flow into safe havens, which includes both currencies within this pair, so little movement happened. However, the Yen tends to be a little stronger than the Dollar in a crisis, and since we opened this week the price has made a pop below the former bearish price channel shown within the chart below. The question now is whether the price will get back above 110.45, which is likely to be the pivotal level today. I will take a cautiously bearish bias if the price fails over some hours to rise above 110.45.
There is nothing important due today concerning either the JPY or the USD.
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