USD/JPY Forex Signal - 18 July 2017

 

Yesterday’s signals produced a profitable short trade following the bearish rejection with an inside candlestick on the hourly chart rejecting the resistance level at 112.85. It would probably be a good idea to take at least partial profit now as the price seems as if it may be bottoming out.

Today’s USD/JPY Signals

Risk 0.75%.

Trades must be entered from 8am New York time to 5pm Tokyo time, during the next 24-hour period only.

Short Trade 1

  • Short entry following a bearish price action reversal on the H1 time frame immediately upon the next touch of 112.85.
  • 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 run.

Long Trades

  • Long entry following a bearish price action reversal on the H1 time frame immediately upon the next touch of 111.74 or 111.39.
  • 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 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

Yesterday saw a test of 112.85 from which the price has fallen quite convincingly. After threatening to really start moving upwards a few days ago, the price is now becoming established in a bearish channel. A major test of the new bearishness will come if the price reaches the supportive area below, with 111.74 and 111.39 producing a confluence of support that could become a generalized zone. There is no strong long-term trend in this currency pair.
USDJPY

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

Adam Lemon

Adam Lemon began his role at DailyForex in 2013 when he was brought in as an in-house Chief Analyst. Adam trades Forex, stocks and other instruments in his own account. Adam believes that it is very possible for retail traders/investors to secure a positive return over time provided they limit their risks, follow trends, and persevere through short-term losing streaks – provided only reputable brokerages are used. He has previously worked within financial markets over a 12-year period, including 6 years with Merrill Lynch.