USD/JPY Forex Signal

Last Thursday’s signals were not triggered, as none of the key price levels were ever reached.

Today’s USD/JPY Signals

Risk 0.75%.

Trades may only be entered between 8am New York time and 5pm Tokyo time during the next 24-hour period.

Short Trade

• Short entry following a bearish price action reversal on the H1 time frame immediately upon the next touch of 112.65.

• 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 Trade

• Long entry following a bullish price action reversal on the H1 time frame immediately upon the next touch of 112.19.

• 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 last Thursday that if we got a strong push up beyond 113.60 on above-average volatility, I would take a bullish bias until the resistance at 114.18, which I thought would be likely to hold over the short term. This was a good call, as although 113.60 was slightly exceeded by the price, the relatively volatility remained low, and the price failed to rise any higher.

The price has been falling quite strongly since the week began as U.S. markets have sold off to touch new long-term low prices, sending money flowing into safe havens such as the Japanese Yen. There is still good bearish momentum, but the area below at 112.19 has acted as strong support for a while, so the price may not be able to get any lower than that, at least over the next day or thereabouts. I am bearish below 112.65 until 112.19 is reached.

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