USD/JPY Forex Signal - May 11, 2016

USD/JPY Signal Update

Yesterday’s signals might have provided a short trade entry off the rejection of the resistance at 109.27, which would be in profit. It would probably be worthwhile to hold onto at least some of such a position, as we might have seen a major reversal back into line with the long-term trend.

Today’s USD/JPY Signals

Risk 0.75%

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

Short Trades

• Short entry following a bearish price action reversal on the H1 time frame immediately upon the next touch of 109.27 or 109.89.

• Place 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.

• 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 Trades

• Long entry following a bullish price action reversal on the H1 time frame immediately upon the next touch of 108.20 or 107.50.

• Place 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.

• Remove 50% of the position as profit when the trade is 20 pips in profit and leave the remainder of the position to ride.

USD/JPY Analysis

I forecast yesterday that it looked as if we would reach 109.00 and a little way above that there is an interesting point at around 109.25 where a turn might occur. This seems to be exactly what occurred, and we may now have a resumption of the long-term bearish trend. A further pullback making a lower high below 109.27 could also be a powerful short entry signal.

We may have seen minor support at 108.50 already put in a short-term low, however.

(Click on image to enlarge)

There are no high-impact events due today concerning the JPY. Regarding the USD, there will be a release of Crude Oil Inventories at 3:30pm London time