Analysis of transactions and tips for trading USD/JPY
The test of 147.39, coinciding with the decline of the MACD line from zero, provoked a sell signal that led to a price decrease of over 50 pips.
Activity data in Japan's service sector led to a decline in USD/JPY. However, sellers once again failed to consolidate below the monthly low, allowing buyers to take advantage. This resulted in the pair remaining within the horizontal channel. Further movement will depend on the US GDP data, which will come out during the US trading session.
For long positions:
Buy when the price hits 147.87 (green line on the chart) and take profit at 148.34. Growth will occur after good statistics from the US.
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 147.59, but the MACD line should be in the oversold area as only by that will the market reverse to 147.87 and 148.34.
For short positions:
Sell when the price reaches 147.59 (red line on the chart) and take profit at 147.18. Pressure will return in the case of a failed attempt to break beyond the daily high.
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 147.87, but the MACD line should be in the overbought area as only by that will the market reverse to 147.59 and 147.18.
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.
