USD/JPY Forex Signal – 21 May 2018

Last Thursday’s signals were not triggered, as none of the key levels were ever reached that day.

Today’s USD/JPY Signals

Risk 0.75%.

Trades must be entered from 8amNew York time until 5pmTokyo 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 111.75.

— Put 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.

— 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

— Long entry following a bullish price action reversal on the H1 time frame immediately upon the next touch of 110.02.

— Put 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.

— 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

Last Thursday I was correct to take a bullish bias, and to note that there were reasons to increase my bullishness, as the pace of the rise increased. The price has continued to rise since the weekly open today, with the price gapping up a little and surpassing the resistance level at 111.20, which may become new support, but it is truly too early to say. The price is pulling back a little at the time of writing, but that is normal at this time of day, with the more important daily direction using being felt soon after New York opens. There is no reason not to maintain a bullish bias, but it might be difficult to find a solid support level nearby at which to seek a long trade entry. I would be careful about going short at 111.75 too early if that level is reached.

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

This article provided by NewsEdge.