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 Trades

• Go short following a bearish price action reversal on the H1 time frame immediately upon the next touch of 111.20 or 111.82.

• Put the stop loss 1 pip above the local swing high.

• Move the stop loss to break even once the trade is 20 pips in profit.

• 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

• Go long following a bullish price action reversal on the H1 time frame immediately upon the next touch of 110.50 or 109.85.

• Put the stop loss 1 pip below the local swing low.

• Move the stop loss to break even once the trade is 20 pips in profit.

• 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

The Bank of Japan’s monthly releases earlier did not have a big effect on the price, with all the key levels and trend lines basically holding firm. The balance looks very evenly matched between buyers and sellers, and there is considerably more volatility in European currencies now. There is a long-term bearish trend here, but it is weak. The key thing to watch here today will probably be whether the resistance level at 111.20 holds. If the price breaks above the level, it could reach as high as 111.81 within a few hours.

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