Analysis of transactions and trading tips on USD/JPY
The test of 147.60, coinciding with the rise of the MACD line from zero, provoked a buy signal that led to a price increase of over 30 pips.
The decision of the Bank of Japan did not affect the market's direction, but the sharp tone of the representative during the press conference, albeit temporarily, brought back pressure on the pair. Shortly after, traders managed to offset part of the decline, clearly indicating that dollar will continue to be attractive at every convenient decrease of the pair. Nothing important will come out in the afternoon besides the Philadelphia Fed manufacturing index. Buyers should not have any difficulties with offsetting the remaining part of the pair's decline.
For long positions:
Buy when the price hits 148.00 (green line on the chart) and take profit at 148.54. Growth may occur after the strong downturn observed in the morning.
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 147.54, but the MACD line should be in the oversold area as only by that will the market reverse to 148.00 and 148.54.
For short positions:
Sell when the price reaches 147.54 (red line on the chart) and take profit at 146.95. Pressure will return in the case of failed consolidation around 148.00.
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 148.00, but the MACD line should be in the overbought area as only by that will the market reverse to 147.54 and 146.95.
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.
