Analysis of transactions and tips for trading USD/JPY
The test of 147.09, coinciding with the rise of the MACD line from zero, prompted a buy signal that led to a price increase of over 30 pips.
The reported slowdown in Japan's inflation offset the growth of activity in the services sector. However, pressure on dollar prevailed, maintaining the chances for further downtrend. Weak PMI data for the US will also trigger a sell-off, while a strong data will allow buyers to hold monthly lows and provoke an upward correction.
For long positions:
Buy when the price hits 147.20 (green line on the chart) and take profit at 147.77. Growth will occur after a strong data from the US. 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 146.74, but the MACD line should be in the oversold area as only by that will the market reverse to 147.20 and 147.77.
For short positions:
Sell when the price reaches 146.74 (red line on the chart) and take profit at 146.19. Pressure will return and persist in the case of an unsuccessful consolidation around the daily 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 147.20, but the MACD line should be in the overbought area as only by that will the market reverse to 146.74 and 146.19.
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.
