USD/JPY Forex Signal – 24 May 2018

Yesterday’s signals were not triggered, as there was no bullish price action at any of the support levels which were reached.

Today’s USD/JPY Signals

Risk 0.75%.

Trades may only be taken between 8am New York time and 5pm Tokyo time, during the next 24-hour period.

Short Trades

— Go short following a bearish price action reversal on the H1 time frame immediately upon the next touch of 110.40, 110.58, or 110.86.

— 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 Trades

— Go long 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 yesterday that the price was most likely settle and consolidate over the coming hours, at least until the FOMC release due later. I was wrong, the price has continued to fall with momentum, invalidating a bullish trend line and two support levels. The Japanese Yen has been unusually strong over recent hours. There is a weak, long-term bullish trend which is in serious doubt now. It is difficult to predict what is going to happen here, especially as the short-term bearish momentum seems to have stopped or at least slowed down. This pair is a confusing picture and is probably best avoided by traders for the time being. I have no directional bias.

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

This article provided by NewsEdge.