2026/02/05 USD/JPY Trade Strategy
Today's USD/JPY call: Buy.
Everything from the 4-hour chart down is rising, so I’m going into day trading with a bullish bias as well.
The daily chart has made a V-shaped reversal from a big drop, but it has reached a price zone where I need to watch out for a decline, so I’m looking to buy with that in mind.
If it does drop, my reference range is a bit wide: I’m considering two candidates, either a rise from the yellow line around 156.8 without falling further, or a bounce near the blue line around the letter B.
Review
It was Scenario B.
It played out as the pattern I wrote about this morning: “rise from the yellow line around 156.8 without breaking lower.”
The long came after price held firm at the yellow line, leaving a long lower wick.
It reached the 157.3 target, but since I was looking at the blue line at 157.37 just above as the target, even with a limit set slightly below it, the order would have just barely missed before price dropped.
In that case, you take profit where it started to look like a double top. 38pips
If you didn’t change anything from circle ①, you’d go long from circle ② under Scenario A after the breakout.
This article reflects the author's personal view of the market. It does not recommend any specific trade; all investment decisions are your own responsibility.
