FX.co ★ Analysis and trading tips for USD/JPY on February 6 (US session)

Analysis of transactions and trading tips on USD/JPY

Further growth became limited because the test of 148.62 coincided with the sharp rise of the MACD line from zero.

Ahead lies the economic optimism index from RCM/TIPP, followed by a speech from FOMC member Loretta Mester. A firm tone will fuel dollar demand, leading to a rise in the pair. Meanwhile, a softer tone, especially with a hint of an imminent rate cut, will open the chances for a decline towards the lower boundary of the horizontal channel.

For long positions:

Buy when the price hits 148.79 (green line on the chart) and take profit at 149.46. Growth will occur in continuation of Friday's trend, especially after good statistics from the US.

When buying, ensure that the MACD line lies above zero or rises from it. Also consider buying USD/JPY after two consecutive price tests of 148.52, but the MACD line should be in the oversold area as only by that will the market reverse to 148.79 and 149.46.

For short positions:

Sell when the price reaches 148.52 (red line on the chart) and take profit at 147.97. Pressure will increase in the case of weak US data and a soft position from Fed representatives.

When selling, ensure that the MACD line lies below zero or drops down from it. Also consider selling USD/JPY after two consecutive price tests of 148.79, but the MACD line should be in the overbought area as only by that will the market reverse to 148.52 and 147.97.

What's on the chart:

Thin green line - entry price at which you can buy USD/JPY

Thick green line - estimated price where you can set Take-Profit (TP) or manually fix profits, as further growth above this level is unlikely.

Thin red line - entry price at which you can sell USD/JPY

Thick red line - estimated price where you can set Take-Profit (TP) or manually fix profits, as further decline below this level is unlikely.

MACD line- it is important to be guided by overbought and oversold areas when entering the market

Important: Novice traders need to be very careful when making decisions about entering the market. Before the release of important reports, it is best to stay out of the market to avoid being caught in sharp fluctuations in the rate. If you decide to trade during the release of news, then always place stop orders to minimize losses. Without placing stop orders, you can very quickly lose your entire deposit, especially if you do not use money management and trade large volumes.

And remember that for successful trading, you need to have a clear trading plan. Spontaneous trading decision based on the current market situation is an inherently losing strategy for an intraday trader.