USD/JPY Forex Signal – 14 May 2018

Last Thursday’s signals were not triggered, as there was no bullish price action at 109.58.

Today’s USD/JPY Signals

Risk 0.75%.

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

Short Trade

• Short entry following a bearish price action reversal on the H1 time frame immediately upon the next touch of 109.61.

• 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 Trade

• Long entry following a bullish price action reversal on the H1 time frame immediately upon the next touch of 109.15.

• Place 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 last Thursday that I was very weakly bullish, but the price has moved down since then. This pair is very flat, with little movement, although the bullish trend line shown in the chart below has continued to hold up, which is a bullish sign. It looks likely that we will see the price continue to advance slowly, but the resistance at 109.61 might halt the advance. A sustained break above that level would be a bullish sign, but I think it is not likely to happen today as there is nothing scheduled which is likely to make sentiment on the greenback significantly more bullish. There will probably be better opportunities in the European currency pairs today, at least until the next Asian session begins.

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