USD/JPY Forex Signal

12 June 2017 9:21:22 AM

By: DailyForex.com

Last Thursday’s signals produced a profitable short trade from the bearish reversal at 110.25.

Risk 0.75%.

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

Short Trade 1

  • Go short following a bearish price action reversal on the H1 time frame immediately upon the next touch of 110.72.
  • 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

  • Long entry following a bearish price action reversal on the H1 time frame immediately upon the next touch of 109.73.
  • 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 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

We have seen a pull-back very close to the upper trend line of the bearish channel shown in the chart below, and the price behaved in line with the technical situation by falling from there. We see a continuation of the bearish picture over the past few hours as the price breaks down below anticipated support at 110.13. It is debatable whether the price will fall much further, but the trends are certainly bearish now.USDjpy

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

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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