Analysis of Trades and Trading Tips for the Japanese Yen
The test of the 157.01 price level occurred when the MACD indicator had already moved significantly above the zero mark, limiting the pair's upward potential. For this reason, I did not buy. Considering the downward trend, it is best to trade in the direction of the market with low volume. In the second half of the day, volatility is unlikely to increase, so if USD/JPY continues to rise, I will focus more on selling. As the dollar strengthens, short positions may become more attractive. Regarding the intraday strategy, I plan to act based on Scenario #1 and Scenario #2 for selling.
Buy Signal
Scenario #1: Today, I plan to buy USD/JPY at the entry point around 157.32 (green line on the chart) with a target of rising to 158.24 (thicker green line). Around 158.24, I will exit the buy positions and open sell positions (expecting a movement of 30-35 points from this level). A strong rise in the pair today is unlikely. Note: Before buying, ensure the MACD indicator is above the zero mark and beginning to rise.
Scenario #2: I also plan to buy USD/JPY today if the price level of 156.65 is tested twice consecutively when the MACD indicator is in the oversold area. This will limit the pair's downward potential and lead to an upward market reversal. Growth can be expected towards the levels of 157.32 and 158.24.
Sell Signal
Scenario #1: I plan to sell USD/JPY today after the 156.65 level (red line on the chart) is updated, which could lead to a quick decline in the pair. The key target for sellers will be the 155.86 level, where I will exit the sell positions and immediately open buy positions (expecting a movement of 20-25 points from this level). Pressure on the pair may return if buyers fail to sustain the price near the daily high. Note: Before selling, ensure the MACD indicator is below the zero mark and beginning to decline.
Scenario #2: I also plan to sell USD/JPY today if the price level of 157.32 is tested twice consecutively when the MACD indicator is in the overbought area. This will limit the pair's upward potential and lead to a downward market reversal. A decline can be expected towards the levels of 156.65 and 155.86.
Chart Legend:
- Thin green line: Entry price for buying the trading instrument.
- Thick green line: Expected price for placing Take Profit or manually fixing profits, as further growth above this level is unlikely.
- Thin red line: Entry price for selling the trading instrument.
- Thick red line: Expected price for placing Take Profit or manually fixing profits, as further decline below this level is unlikely.
- MACD Indicator: When entering the market, it is important to consider overbought and oversold zones.
Important: Beginner traders in the forex market should cautiously make market entry decisions. It is best to stay out of the market before the release of important fundamental reports to avoid sudden price fluctuations. If you decide to trade during news releases, always set stop orders to minimize losses. You must set stop orders to avoid losing your entire deposit, especially if you do not use money management and trade large volumes. Remember, successful trading requires having a clear trading plan, like the one presented above. Making spontaneous trading decisions based on the current market situation is initially a losing strategy for an intraday trader.
