Analysis of transactions and tips for trading USD/JPY
The test of 145.52 earlier in the day coincided with the rise of the MACD line from zero. This prompted a buy signal and led to a price increase of over 50 pips. The pair also hit the target resistance level of 145.72
Decreasing price pressure in Japan further weakened the yen's position. But for today, much will depend on Fed Chairman Jerome Powell's speech at the Jackson Hole symposium, in which he may take a tough stance on monetary policy, despite all signs of a slowdown in the US economy. Accordingly, this will lead to another rise in USD/JPY. The situation will change only if Powell announces that the Fed no longer plans to raise interest rates. In that case, the pair will drop noticeably.
For long positions:
Buy when the price hits 146.25 (green line on the chart) and take profit at 146.81. Further growth may occur after Powell's speech and amid a hawkish edge on monetary policy. However, when buying, ensure that the MACD line lies above zero or just starts to rise from it.
Also consider buying USD/JPY after two consecutive price tests of 145.81, but the MACD line should be in the oversold area as only by that will the market reverse to 146.25 and 146.81.
For short positions:
Sell when the price reaches 145.81 (red line on the chart) and take profit at 145.28. Pressure will return if Powell deviates from his previous promises. However, when selling, traders must ensure that the MACD line lies below zero or drops down from it.
Also consider selling USD/JPY after two consecutive price tests of 146.25, but the MACD line should be in the overbought area as only by that will the market reverse to 145.81 and 145.28.
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.