Analysis of transactions and tips for trading USD/JPY
The test of 149.20, coinciding with the upward movement of the MACD line from zero, prompted a buy signal that led to a price increase of over 50 pips.
The pair nears the psychological level of 150, where the Bank of Japan could intervene at any moment to curb the weakness of yen. Considering that interesting data such as the University of Michigan's consumer sentiment index and inflation expectations lie ahead, pressure on yen could return at any moment, leading to a break above the 150 level. However, buying there should be done with extreme caution and tight stop orders.
For long positions:
Buy when the price hits 149.85 (green line on the chart) and take profit at 150.42. Growth will occur in continuation of the bull market, supported by strong data from the US. 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 149.65, but the MACD line should be in the oversold area as only by that will the market reverse to 149.85 and 150.42.
For short positions:
Sell when the price reaches 149.65 (red line on the chart) and take profit at 149.10. Pressure will return in the case of 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 149.85, but the MACD line should be in the overbought area as only by that will the market reverse to 149.65 and 149.10.
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.
