USD/JPY Forex Signal
|Yesterday’s signals were not triggered, as there was no bearish price action at the 113.66 level.
Today’s USD/JPY Signals
Risk 0.75%.
Trades must be entered before 5pm Tokyo time, over the next 24-hour period only.
Short Trade
-
Go short following a bearish price action reversal on the H1 time frame immediately upon the next touch of 114.18.
-
Place 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 113.66, 113.40 or 113.14.
-
Place 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 a break above 113.80 or so would be a very bullish sign, but if the price traded below 113.40 for a couple of hours it would suggest a deeper pullback towards the lower end of the channel is becoming more likely. This was an OK if rather inconsequential call as the high was made a few hours ago at 113.90 only 10 pips above 113.80. We see in the chart below not exactly a bullish channel, but the medium and long-term pictures and certainly bullish, albeit weakly so. It now seems likely that 113.66 is going to be a pivotal level, and I would take a bullish bias on this currency pair if there is a healthy bullish bounce at that level later.
There is nothing important due today concerning the JPY. Regarding the USD, there will be a release of CB Consumer Confidence data at 3pm London time.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.