Review of Trades and Trading Tips for the Japanese Yen
The test of the 151.76 price level occurred when the MACD indicator had already moved significantly below the zero line, which limited the pair's downward potential. For this reason, I did not sell the dollar. In the second half of the day, apart from the U.S. factory orders report, there is nothing else expected, so significant market volatility is unlikely. I will act within the formed channel, anticipating reversals from the levels mentioned below. For intraday strategy, I will focus more on implementing scenario #2.
Buy Signal
Scenario #1: Today, I plan to buy USD/JPY at the entry point around 152.01 (green line on the chart) with the target of rising to 152.66 (thicker green line on the chart). At 152.66, I will exit purchases and open sell positions in the opposite direction (expecting a 30-35 point move in the opposite direction from the level). A rise in the pair today can only be expected following strong U.S. statistics. Important! Before buying, make sure the MACD indicator is above the zero line 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 151.49 price level while the MACD indicator is in the oversold area. This will limit the pair's downward potential and lead to a market reversal upward. A rise to the opposite levels of 152.01 and 152.66 can be expected.
Sell Signal
Scenario #1: I plan to sell USD/JPY after the price updates the 151.49 level (red line on the chart), which will lead to a quick decline in the pair. The key target for sellers will be the 150.91 level, where I will exit sales and immediately buy in the opposite direction (expecting a 20-25 point move in the opposite direction from the level). Pressure on the pair may return following weak U.S. statistics. Important! Before selling, make sure the MACD indicator is below the zero line and just starting to fall from it.
Scenario #2: I also plan to sell USD/JPY today if there are two consecutive tests of the 152.01 price level while the MACD indicator is in the overbought area. This will limit the pair's upward potential and lead to a market reversal downward. A decline to the opposite levels of 151.49 and 150.91 can be expected.
Chart Notes:
- Thin green line – entry price for buying the trading instrument.
- Thick green line – anticipated price for placing Take Profit or manually taking profit, as further growth above this level is unlikely.
- Thin red line – entry price for selling the trading instrument.
- Thick red line – anticipated price for placing Take Profit or manually taking profit, as further decline below this level is unlikely.
- MACD Indicator: It is important to use overbought and oversold zones when entering the market.
Important: Beginner Forex traders should exercise extreme caution when making market entry decisions. It is best to stay out of the market before significant fundamental reports to avoid sharp price fluctuations. If you decide to trade during news releases, always set stop-loss orders to minimize losses. Without stop-loss orders, you could quickly lose your entire deposit, especially if you do not use money management and trade large volumes.
Remember: To trade successfully, you need a clear trading plan, like the one outlined above. Making spontaneous trading decisions based on current market conditions is an inherently losing strategy for intraday traders.
