Forex Analysis & Reviews: 31.01.2025 - USD/JPY: Simple Trading Tips...

InstaForex - Official partner of Dragon Racing

This section features the most important information about trading with InstaForex. We provide both analysis from leading experts for experienced traders and articles on trading conditions for beginners. Our services will help increase your profit potential.

Become Trader

Account Opening

See also

Trading Conditions

Forex Analytics

Charts

This section is designed for those who are just starting their trading journey. InstaForex educational and analytical materials will meet your training needs. Our experts' recommendations will make your first steps to trading success simple and clear.

Start as Beginner

How to start trading

Useful information

Training and recordings

InstaForex innovative services are an essential element of productive investment. We strive to provide our clients with advanced technical capabilities and make their trading routine comfortable as we are recognized as the best broker in this regard.

Become Investor

PAMM System

ForexCopy System

Passive investments

OYS account

Partnership with InstaForex is beneficial and top-tier. Join our affiliate programs and enjoy bonuses, partner rewards, and the possibility to travel with the team of the world-renowned brand.

Become Partner

Main Page

Partner Area

Advantages for Affiliates

Registration

This section contains the most lucrative offers from InstaForex. Receive bonuses when topping up an account, compete with other traders, and get real prizes even when trading in a demo account.

All Promo Campaigns

Bonuses

Contests

Events

Holidays with InstaForex are not only pleasant but also useful. We offer a one-stop portal, numerous forums, and corporate blogs, where traders can exchange experiences and become successfully integrated into the Forex community.

Full details

Forums

We are in social networks

Forex humour

Forex Portal

InstaForex is an international brand created in 2007. The company provides services for online FX trading and is recognized as one of the world's leading brokers. We have won the trust of more than 7,000,000 retail traders, who have already appreciated our reliability and focus on innovations.

Learn More

History

Why Choose Us

InstaSport

Regulation

Company News

Awards

InstaForex Stars

InstaForex Offline

Key documents

Social Responsibility

InstaForex Loprais Team - Official participant of the Dakar rally

31.01.2025 02:19 PM

USD/JPY: Simple Trading Tips for Beginner Traders on January 31st (U.S. Session)

Trade Review and Recommendations for the Japanese Yen

The test of 154.54 in the first half of the day occurred when the MACD indicator had already moved significantly below zero, which, within the morning uptrend, limited the pair's downward potential. For this reason, I did not sell the U.S. dollar.

This afternoon, we have key U.S. economic data releases, including Core PCE Price Index and Personal Spending and Income Reports.

If the data comes in strong, the dollar could extend its gains, strengthening USD/JPY further.

Additionally, the speech from FOMC member Michelle Bowman will be closely watched. If she maintains a hawkish stance on interest rates, it could provide another reason to buy the dollar and sell the yen.

For intraday trading, I will focus on Scenario #1 and Scenario #2, aligning with the continuation of the downward trend.

Buy Signal

Scenario #1: Buy USD/JPY at 154.82 (green line on the chart) targeting 155.77 (thicker green line on the chart). At 155.77, I will exit the long position and sell USD/JPY, expecting a 30–35 point pullback. Bullish momentum depends on strong U.S. economic data.

Important! Before buying, confirm that MACD is above zero and beginning to rise.

Scenario #2: Buy USD/JPY after two consecutive tests of 154.47, provided that MACD is in the oversold zone. This setup will limit the downward potential and could trigger a bullish reversal. Expected upside targets: 154.82 and 155.77.

Sell Signal

Scenario #1: Sell USD/JPY after a break below 154.47 (red line on the chart), targeting 153.75. At 153.75, I will exit short positions and buy USD/JPY, expecting a 20–25 point retracement. Bearish pressure could increase following weak U.S. data.

Important! Before selling, confirm that MACD is below zero and beginning to decline.

Scenario #2: Sell USD/JPY after two consecutive tests of 154.82, provided that MACD is in the overbought zone. This setup will limit the upward potential and could trigger a bearish reversal. Expected downside targets: 154.47 and 153.75.

Chart Explanation

Thin green line – Entry price for buying.
Thick green line – Take Profit level or target where further upside is unlikely.
Thin red line – Entry price for selling.
Thick red line – Take Profit level or target where further downside is unlikely.
MACD Indicator – Overbought and oversold zones should be monitored before entering a trade.

Important Notes for Beginner Forex Traders

Exercise caution when entering trades, especially before major U.S. economic data releases.
Avoid trading right before key reports to prevent getting caught in high volatility.
Always use stop-loss orders to minimize potential losses, especially when trading large volumes.
Without stop-loss protection, you risk losing your deposit quickly.
A structured trading plan is essential—like the one presented above.
Spontaneous trading decisions based on short-term market movements are a losing strategy for intraday traders.

You have already liked this post today

*Disclaimer: The market analysis posted here is meant to increase your awareness, but not to give instructions to make a trade.

If you have any content questions, please contact editorial-board@instaforex.com

# USD # JPY # USDJPY # For beginners Forecast

Trade Review and Recommendations for the Japanese Yen