Analysis of transactions and tips for trading USD/JPY
No price tests occurred in the pair on Monday afternoon, as the data on money supply and capital spending in Japan helped maintain balance in the market. Today, a reasonably good set of data on economic activity in Japan came out, but yen ignored them. Most likely, the rise in Service and Composite PMI pleased economists. However, such figures did not leave an impression on buyers. This indicates that yen's issues persist even above the level of 150.
For long positions:
Buy when the price hits 150.58 (green line on the chart) and take profit at 150.95. Growth could occur, in continuation of the upward trend.
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 150.37, but the MACD line should be in the oversold area as only by that will the market reverse to 150.58 and 150.95.
For short positions:
Sell when the price reaches 150.37 (red line on the chart) and take profit at 149.78. Pressure will return after an unsuccessful attempt to break 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 150.58, but the MACD line should be in the overbought area as only by that will the market reverse to 150.37 and 150.07.
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.
