USD/JPY Forex Signal

By: DailyForex.com

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

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.

Short Trade

* Go short following a bearish price action reversal on the H1 time frame immediately upon the next touch of 107.17.

* Place 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.

* Remove 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

* Go long following a bullish price action reversal on the H1 time frame immediately upon the next touch of 106.68, 106.44, or 106.13.

* 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.

* Remove 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

I wrote yesterday that this pair was looking increasingly unpredictable, but that I still maintained a bullish bias above 106.68. This turned out to be a wrong approach, as the price has instead fallen, and is breaking through support as I write. This leaves us with 106.68 as the next support. The price action is choppy. It looks as if this pair might be best avoided, as its movement still seems unpredictable. Note that the U.S. Dollar is weak, falling against the Euro and the Pound, as well as the Japanese Yen.