Analysis of transactions and tips for trading USD/JPY
Although no price tests occurred in the pair on Wednesday, yen continued to decline after rising briefly during the speech of Bank of Japan Governor Takata Hajime. He mentioned the possibility of the bank's intervention in the current exchange rate, as over the recent period, yen lost more than 10% against dollar, causing concern for the central bank. The leading economic indicators index released today also did not help the exchange rate, so intervention may be necessary.
Today, data on US jobless claims will come out, but much more attention will be drawn to the speeches of FOMC members Patrick T. Harker, John Williams, and Michelle Bowman. If they maintain a firm stance even after the recent PMI reports, the pair's upward movement will likely continue.
For long positions:
Buy when the price hits 147.72 (green line on the chart) and take profit at 148.41. Growth will occur in continuation of the bullish trend. However, when buying, ensure that the MACD line lies above zero or just starts to rise from it.
Also consider buying USD/JPY after two consecutive price tests of 147.13, but the MACD line should be in the oversold area as only by that will the market reverse to 147.72 and 148.41.
For short positions:
Sell when the price reaches 147.13 (red line on the chart) and take profit at 146.45. Pressure will return after significant central bank intervention. However, 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 147.72, but the MACD line should be in the overbought area as only by that will the market reverse to 147.13 and 146.45.
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.
