Analysis of transactions and tips for trading USD/JPY
Further decline became limited because the first test of 151.23 coincided with the sharp downward movement of the MACD line from zero. On the second test, the MACD line just began to fall from zero, prompting a sell signal. This led to a price decrease of over 45 pips.
Weak jobless claims data and a sharp contraction in industrial production in the US sparked an active decline in dollar and strengthening of yen, which may continue after the release of reports on the US real estate market, particularly on the figures of issued building permits and new foundation layouts.
For long positions:
Buy when the price hits 150.80 (green line on the chart) and take profit at 151.38. Growth will continue in line with the bull market, especially after strong statistics 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 150.51, but the MACD line should be in the oversold area as only by that will the market reverse to 150.80 and 151.38.
For short positions:
Sell when the price reaches 150.51 (red line on the chart) and take profit at 150.06. Pressure will increase in the case of another round of weak statistics from the US. 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 150.80, but the MACD line should be in the overbought area as only by that will the market reverse to 150.51 and 150.06.
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.
