Analysis of transactions and tips for trading USD/JPY
Further decline became limited because the test of 151.55 coincided with the sharp drop of the MACD line from zero. Shortly after, another test occurred, and this time it happened when the MACD line entered the oversold area, provoking a buy signal. As a result, the pair rose by 10 pips.
Weak growth in Japan's monetary base did not affect the direction of the pair. As for today, fairly decent figures on activity in Japan's service sector have been released, which, although slowed down slightly, continued to show growth. However, market players ignored these news, evidently focusing on the upcoming statistics on the US labor market and statements from Fed representatives.
For long positions:
Buy when the price hits 151.75 (green line on the chart) and take profit at 152.02. Growth could occur if buyers manage to break through the upper boundary of the horizontal channel.
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 151.54, but the MACD line should be in the oversold area as only by that will the market reverse to 151.75 and 152.02.
For short positions:
Sell when the price reaches 151.54 (red line on the chart) and take profit at 151.29. Pressure will return after an unsuccessful attempt to consolidate around the yearly 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 151.75, but the MACD line should be in the overbought area as only by that will the market reverse to 151.54 and 151.29.
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.
