Analysis of Trades and Trading Tips for the Japanese Yen
The test of the 144.30 price level occurred when the MACD indicator had moved significantly down from the zero mark, which limited the pair's downward potential, especially within the context of an upward corrective movement. For this reason, I did not sell the yen. Unfortunately, there are no relevant U.S. statistics in the second half of the day that could impact market dynamics, so I expect another attempt to strengthen the yen and a decline of the dollar, followed by similar active actions by buyers around 144.17. I will continue to act based on the anticipated upward correction of USD/JPY. Regarding the intraday strategy, I plan to implement scenarios #1 and #2.
Buy Signal
Scenario #1: Today, I plan to buy USD/JPY upon reaching the entry point around 144.50 (the green line on the chart) with a target to rise to the 144.92 level (the thicker green line on the chart). Around 144.92, I will exit purchases and start selling in the opposite direction, targeting a movement of 30-35 points in the opposite direction from the level. Expecting significant growth in the pair today is based on the context of a bullish correction. Important: Before buying, make sure the MACD indicator is above the zero mark and just starting to rise from it.
Scenario #2: I also plan to buy USD/JPY today if there are two consecutive tests of the 144.17 price level when the MACD indicator is in the oversold area. This will limit the pair's downward potential and lead to a reversal of the market upwards. We can expect growth to the levels of 144.50 and 144.92.
Sell Signal
Scenario #1: I plan to sell USD/JPY today after the 144.17 level (the red line on the chart) is breached, which will likely lead to a quick decline in the pair. The key target for sellers will be the 143.76 level, where I will exit the sales and also immediately open buys in the opposite direction, expecting a movement of 20-25 points in the opposite direction from the level. Pressure on the pair will return if there is an unsuccessful attempt to rise above the daily high. Important: Before selling, make sure the MACD indicator is below the zero mark and just starting to decline from it.
Scenario #2: I also plan to sell USD/JPY today if there are two consecutive tests of the 144.50 price level when the MACD indicator is in the overbought area. This will limit the pair's upward potential and lead to a reversal of the market downwards. We can expect a decline to the levels of 144.17 and 143.76.
Chart Key:
- Thin green line: The entry price at which you can buy the trading instrument.
- Thick green line: The expected price where you can set Take Profit or manually lock in profits, as further growth above this level is unlikely.
- Thin red line: The entry price at which you can sell the trading instrument.
- Thick red line: The expected price where you can set Take Profit or manually lock in profits, as further decline below this level is unlikely.
- MACD Indicator: When entering the market, it's important to consider overbought and oversold zones.
Important: Beginner traders in the Forex market need to make market entry decisions very carefully. It is best to stay out of the market before significant fundamental reports are released to avoid sharp price fluctuations. If you decide to trade during news releases, always set stop orders to minimize losses. Without stop orders, you can quickly lose your entire deposit, especially if you are not using money management and are trading large volumes.
Remember that successful trading requires a clear trading plan, like the one presented above. Spontaneous trading decisions based on the current market situation are an inherently losing strategy for intraday traders.
