Analysis of transactions and tips for trading USD/JPY
Further decline became limited as the test of 152.86 coincided with the sharp drop of the MACD line from zero. Shortly after, another test occurred, and this time the MACD line went within the oversold area, provoking a buy signal. This led to a price increase of 40 pips.
Strong data on US producer prices allowed buyers to quickly return to the market. If dollar's rise continues, the Bank of Japan will intervene, which will lead to the decline of USD/JPY. However, a significant drop in the pair will likely provoke actions from dollar bulls.
For long positions:
Buy when the price hits 153.34 (green line on the chart) and take profit at 153.88. Growth could occur after the breakdown of the daily high.
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 152.97, but the MACD line should be in the oversold area as only by that will the market reverse to 153.34 and 153.88.
For short positions:
Sell when the price reaches 152.97 (red line on the chart) and take profit at 152.60. Pressure will return after an unsuccessful break through the daily high and active actions by the central bank.
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 153.34, but the MACD line should be in the overbought area as only by that will the market reverse to 152.97 and 152.60.
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.
