Analysis of transactions and tips for trading USD/JPY
Further growth became limited because the test of 148.63 took place when the MACD line moved upward quite sharply from zero. Sometime later, another test occurred, but this time at 148.63 and when the MACD line broke away from the overbought area. This led to a signal to sell, resulting in a price decrease of around 25 pips. Buying positions at 148.20 in the afternoon ended with losses.
The Fed's dovish stance served as another reason for selling USD/JPY. However, today, pressure on the pair may weaken as fairly good GDP growth rate data for the US may come out. An upward revision of the indicator will spark a bullish correction, while a similar figure as in the forecasts will maintain pressure on the pair.
For long positions:
Buy when the price hits 147.61 (green line on the chart) and take profit at 148.36. Growth will occur after strong data from the US and hawkish positions from Fed representatives. 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 147.05, but the MACD line should be in the oversold area as only by that will the market reverse to 147.61 and 148.36.
For short positions:
Sell when the price reaches 147.05 (red line on the chart) and take profit at 146.36. Pressure will persist in the case of unsuccessful consolidation around 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 147.61, but the MACD line should be in the overbought area as only by that will the market reverse to 147.05 and 146.36.
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.
