USD/JPY Forex Signal – 28 May 2018

Last Thursday’s signals were not triggered, as the bullish price action took place a little below the support level identified at 109.15.

Today’s USD/JPY Signals

Risk 0.75%.

Trades must be entered from 8am New 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 110.40.

— 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 109.15.

— 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

I wrote last Thursday that the picture looked confusing and the pair was probably best avoided by traders that day as direction seemed difficult to predict. This was pretty good advice as the price has just consolidated since then, briefly dipping below the support level at 109.15 and appearing to invalidate it, but it seems the support level has come back into play. Last week saw a fairly strong fall within a long-term bullish trend and so we could expect some kind of rise this week. The longer the price remains above 109.15, the more likely it is that we will see a rise up back to the area above 110.00. It is probably best to avoid making any calls for another 24 hours or so – the forthcoming Asian session is likely to be important after the long previous period of thin trading through two market sessions.

There is nothing due today concerning either the JPY or the USD. It is a public holiday in the U.S.A.

This article provided by NewsEdge.