USD/JPY Forex Signal

05 June 2017 9:19:41 AM

By: DailyForex.com

Last Thursday’s signals produced a nicely profitable short trade following the bearish break down of the doji candlestick rejecting the resistance level I had previously identified at 111.67.

Today’s USD/JPY Signals

Risk 0.75%.

Trades may only be taken from 8am New York time until 5pm Tokyo time, over the next 24-hour period.

Short Trades

  • Short entry following a bearish price action reversal on the H1 time frame immediately upon the next touch of 111.48 or 111.67.
  • 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 Trade 1

  • Go long following a bearish price action reversal on the H1 time frame immediately upon the next touch of 110.00.
  • 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.
  • 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. 

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 price fell strongly from the top of the obvious resistance zone at 111.67, driven down by the disappointing Non-Farm Payrolls data which was released on Friday. There is a long-term bearish trend in this pair, but the trend is weak and bouncy, making it difficult to trade unless you pick the moments to enter and exit very carefully. There also seems to be buying whenever the price starts to approach the big psychological number of 110.00, which complicates a short trade agenda.
USDJPY

There is nothing due today concerning the JPY. Regarding the USD, there will be a release of ISM Non-Manufacturing PMI at 3pm London time.

Adam is a Forex trader who has worked within financial markets for over 12 years, including 6 years with Merrill Lynch. He is certified in Fund Management and Investment Management by the U.K. Chartered Institute for Securities & Investment. Learn more from Adam in his free lessons at FX Academy.

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