USD/JPY Forex Signal

Yesterday’s signals produced a losing long trade at 111.76 following the bullish inside candlestick break.

Today’s USD/JPY Signals

Risk 0.75%.

Trades must be taken between 8am New York time and 5pm Tokyo time, over the next 24-hour period only.

Short Trade

• Short entry following a bearish price action reversal on the H1 time frame immediately upon the next touch of 112.57.

• 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 run.

Long Trades

• Long entry following a bullish price action reversal on the H1 time frame immediately upon the next touch of 111.66, 111.43, or 111.31.

• 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 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

The extremely weak long-term uptrend continues, and it has been given fresh impetus by the bullish price channel which has formed over the past ten or so days which is shown within the price chart below. I was looking for a major bearish reversal at the former resistance level at 112.15 and after seeming to break up beyond this level decisively just before the London open, the price fell right back down to where it started, printing a false bullish breakout. However, the price channel and support levels remain intact, so it is looking likely that there will not be any major technical developments until the Bank of Japan’s input due later. Until then, it will probably be a superior approach to play any rejections of any key levels for a few pips only in either direction.

There is nothing important due today concerning the USD. Regarding the JPY, there will be a release of the Bank of Japan’s Monetary Policy Statement and Press Conference towards the end of the business day in Tokyo.