Forex Technical Analysis

USD/JPY Forex Signal – 25 July 2019

USDJPY: Bulls still failing to push price higher

Yesterday’s signals produced a long trade from the bullish bounce at 107.99. This trade gave a bit less than the minimum 20 pips profit before pulling back. It is still in profit slightly, but it would probably be wise to exit the trade.

Today’s USD/JPY Signals

Risk 0.75%.

Trades must be taken between 8am New York time Thursday and 5pm Tokyo time Friday.

Short Trade Ideas

  • Go short following a bearish price action reversal on the H1 time frame immediately upon the next touch of 108.48 or 108.73.

  • Put 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 Ideas

  • Go long following a bullish price action reversal on the H1 time frame immediately upon the next touch of 107.99 or 107.79.

  • Put 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.

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USD/JPY Analysis

I wrote yesterday that the price was still above the major support and round number at 108.00. I thought that if this held over the coming hours, the price would be more likely to rise than to fall, but margins were tight and this pair was not in focus right now, so it may be preferable to avoid trading this currency pair.

This was a reasonably good call, with the primary story being a move up over the past 24 hours. However, we can see in the price chart below, there are trend lines and general distribution patterns which are keeping the price supressed below about 108.25.

The action here is thin and looks unpredictable. I do not see how there is likely to be clear directional movement anywhere here so I would avoid trading this currency pair for the time being.USDJPYThere is nothing of high importance due today regarding the JPY. Concerning the USD, there will be a release of Core Durable Goods Orders at 1:30pm London time.

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