USD/JPY Forex Signal – 17 January 2019

USD/JPY Forex Signal – 17 January 2019

Yesterday’s signals were not triggered, as the bearish price action took place a few pips above the resistance level at 109.08.

Today’s USD/JPY Signals

Risk 0.75%.

Trades must be taken from 8am New York time until 5pm Tokyo time today only.

Short Trades

  • Go short following a bearish price action reversal on the H1 time frame immediately upon the next touch of 109.08 or 109.50.

  • 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.

  • Take off 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

  • Go long following a bullish price action reversal on the H1 time frame immediately upon the next touch of 108.34.

  • 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.

  • Take off 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 I took no bias on this pair and saw better opportunities likely to arise in other currency pairs.

Yesterday we saw a rise to the area of resistance at around 109.08 which held, sending the price down to the nearest support level at 108.75. This support has held for a couple of hours but looks increasingly likely to break down. If we get a strong break and the price hold below 108.75 for a couple of hours, I would be prepared to take a bearish bias between 108.75 and 108.34, especially if the U.S. stock market is selling off also.

Zooming out and looking at the broader picture, we are seeing a medium-term consolidation below 109.08. If the price made a surprise rise to get established above 109.08 it would be a significantly bullish sign.USDJPYThere is nothing important due today regarding either the USD or the JPY.

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