Analysis of transactions and trading tips on USD/JPY
Further decline became limited because the test of 147.59 coincided with the sharp fall of the MACD line from zero.
Good US labor market data from the ADP will return dollar demand ahead of the Fed meeting. Then, the upward movement will continue if the Fed takes a firm stance on its monetary policy. If not, USD/JPY will decline.
For long positions:
Buy when the price hits 147.95 (green line on the chart) and take profit at 148.46. Growth will occur after very good US statistics and a firm stance from the Federal Reserve.
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 147.70, but the MACD line should be in the oversold area as only by that will the market reverse to 147.95 and 148.46.
For short positions:
Sell when the price reaches 147.70 (red line on the chart) and take profit at 147.18. Pressure will increase in the case of weak US labor market data.
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 147.95, but the MACD line should be in the overbought area as only by that will the market reverse to 147.70 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.
