08.02.202409:38 Forex Analysis & Reviews: Analysis and trading tips for USD/JPY on February 8

Analysis of transactions and tips for trading USD/JPY

The test of 148.12, coinciding with the rise of the MACD line from zero, provoked a buy signal that led to a price increase of 15 pips. The leading economic index in Japan increased pressure on the pair, but buyers quickly dealt with it, completely removing the chances of a downward correction.

Today, an economic observers' survey came out, leaving much to be desired for the Japanese economy. Weak data on the current account balance and changes in the volume of bank lending have also been released. However, the most significant pressure on yen came from the remarks of Bank of Japan Deputy Governor Shinichi Uchida, who stated that more time would be needed to normalize policy. This means that USD/JPY will continue to rise further, but market players should be cautious when buying around the yearly highs.

For long positions:

Buy when the price hits 148.84 (green line on the chart) and take profit at 149.36. Strong growth will occur, but it will only be after a small pause.

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 148.44, but the MACD line should be in the oversold area as only by that will the market reverse to 148.84 and 149.36.

For short positions:

Sell when the price reaches 148.44 (red line on the chart) and take profit at 147.86. Pressure will return in the case of unsuccessful bullish activity around the local high. However, the decline may not be very strong.

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 148.84, but the MACD line should be in the overbought area as only by that will the market reverse to 148.44 and 147.86.

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.