USD JPY ANALYSIS FEB 5 2025






 Based on the chart provided, here’s an analysis with potential Stop Loss (SL) and Take Profit (TP) suggestions:


Observations:

1. Trend Direction:

• The price seems to be in a downtrend as the moving averages (especially the longer-term ones) indicate a bearish crossover and price action below these levels.

2. Key Levels:

• Support Zone: Around 152.000, where price has previously consolidated.

• Resistance Zone: Around 154.500, near a recent high and moving average level.

3. Moving Averages:

• The shorter moving averages (red and orange) are curving down, which reinforces bearish sentiment.

• The longer moving average (blue) acts as a potential dynamic resistance.

Suggested Entry and Targets:


If you’re holding a SELL position:

• Entry Confirmation: As the price is below the moving averages, selling aligns with the current downtrend.

• Stop Loss:

• Place above the 154.500 resistance zone to allow room for volatility.

• Suggested SL: 154.800

• Take Profit:

• Target the next major support level below the current price.

• Suggested TP: 151.000 (around psychological support and a historical zone).


If considering a BUY position (trend reversal play):

• Entry Confirmation: Wait for a clear breakout above 154.500 with strong bullish candlestick confirmation.

• Stop Loss:

• Below the nearest support level to minimize losses if the trend continues downward.

• Suggested SL: 151.800

• Take Profit:

• Target the next resistance zone above the current price.

• Suggested TP: 156.500

Risk Management:

• Position Sizing: Use appropriate lot sizes based on your account equity and risk appetite.

• Risk-Reward Ratio: Ensure a minimum of 1:2 risk-to-reward ratio to sustain profitability over multiple trades.


Let me know if you’d like further clarification or adjustments!


Comments