Home Forex Signals USD/JPY Forex Signal: Flow into Yen on risk-off sentiment – DailyForex.com

USD/JPY Forex Signal: Flow into Yen on risk-off sentiment – DailyForex.com

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USD/JPY: Bearish

Last Thursday’s signals may have produced a long trade from the bullish bounce at 109.18 which broke even if closed out before the weekend break.

Today’s USD/JPY Signals

Risk 0.75%.

Trades may only be entered between 8am New York time Monday and 5pm Tokyo time Tuesday.

Short Trade Ideas

  • Go short following a bearish price action reversal on the H1 time frame immediately upon the next touch of 109.18 or 109.74.
  • 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.
  • Remove 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 Ideas

  • Go long following a bullish price action reversal on the H1 time frame immediately upon the next touch of 108.62 or 108.27.
  • 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.
  • Remove 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 yesterday that I took a bearish bias on this currency pair below 109.74 until at least 109.18 for the day due the market’s risk-off sentiment.

This was an OK call although the price went sideways over the day. However, it did them fall on Friday and has continued to trade mostly lower after gapping down over the weekend.

The market is spooked by the spread of the Chinese coronavirus which may well cause damage to the Chinese economy, so money is flowing into risk-off assets, especially the Japanese Yen. For this reason, I would continue to seek short trade in this currency pair from retracements to resistance levels.

In the unlikely event that the price can get established below the support level at 107.78, that would be a very bearish sign.

usdjpy

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

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