Analysis of transactions and trading tips on USD/JPY
The test of 143.74, coinciding with the decline of the MACD line from zero, provoked a sell signal that led to a price decrease of around 30 pips.
Pressure on dollar may persist if the upcoming US data disappoints. Weak indicators, especially for consumer confidence and the labor market, will undoubtedly increase demand for yen, leading to a downward movement in USD/JPY. The report on the volume of home sales in the US secondary market and speech of FOMC member Austan D. Goolsbee will not be of great importance, but a tough stance will likely increase pressure on the pair.
For long positions:
Buy when the price hits 143.64 (green line on the chart) and take profit at 144.05. Growth will occur after very strong US statistics and tough comments from Fed representatives.
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 143.34, but the MACD line should be in the oversold area as only by that will the market reverse to 143.64 and 144.05.
For short positions:
Sell when the price reaches 143.34 (red line on the chart) and take profit at 142.87. Pressure will persist if US data disappoints.
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 143.64, but the MACD line should be in the overbought area as only by that will the market reverse to 143.34 and 142.87.
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.
