2026/02/04 USD/JPY Trade Strategy

Today's USD/JPY call: Buy.

It’s been rising all day since the morning. I planned to wait and see until a bit of a structure formed, but there hasn’t been anything you could really call a pullback…
My bias is still to buy, but without at least a small pullback I can’t decide on a stop-loss level, so it’s hard to buy here.

In terms of price zone, this is about where a lot of profit-taking tends to come in.
You’d expect a pullback to form around B, but I think there’s also a risk that profit-taking selling keeps coming in and drives the price lower.

Looking at the daily chart as well, it seems quite plausible that it prints a long upper wick here and turns into a bearish candle.

Review

It was Scenario A.

Long from the red circle, which is the pullback after the short-term downward flow reversed.
Since it’s late at night, set a limit at the recent high and leave it. 24 pips
If you’re watching the chart, take profit where the move stalls at the next line up.