Analysis of transactions and tips for trading USD/JPY
Further growth became limited because the test of 147.29 took place when the MACD line moved upward quite sharply from zero. In the afternoon, further decline also halted as the first test of 148.75 coincided with the sharp downward movement of the MACD line from zero. However, sometime later, another test occurred, and it led to a buy signal, which resulted in a price increase of over 100 pips. Purchases at 149.11 by the mid-US session reinforced the correct view of the market.
Strong data on the US labor market led to an active growth in USD/JPY, which may slow down today in the absence of new statistics on the US.
For long positions:
Buy when the price hits 149.29 (green line on the chart) and take profit at 149.99. Growth will continue as long as bullish activity could be seen above 149.29. However, when buying, ensure that the MACD line lies above zero or rises from it.
Also consider buying USD/JPY after two consecutive price tests of 148.85, but the MACD line should be in the oversold area as only by that will the market reverse to 149.29 and 149.99.
For short positions:
Sell when the price reaches 148.85 (red line on the chart) and take profit at 148.17. Pressure will return in the case of an unsuccessful consolidation at the local high. 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 149.29, but the MACD line should be in the overbought area as only by that will the market reverse to 148.85 and 148.17.
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.
