Analysis of transactions and tips for trading USD/JPY
Further growth became limited because the first test of 149.21 coincided with the sharp rise of the MACD line from zero. As for the second test, it happened when the MACD line went within the overbought area, prompting a signal to sell. However, no decline occurred, and the bullish market continued.
Dollar demand resumed because of the strong data from the United States. Whether the Bank of Japan will intervene remains unclear, but it may happen soon since buyers will most likely continue to pull up the pair, possibly leading to the test of the psychological level of 150.
For long positions:
Buy when the price hits 149.50 (green line on the chart) and take profit at 150.10. Although growth will occur as the bullish market continues, be cautious about buying at current highs.
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 149.23, but the MACD line should be in the oversold area as only by that will the market reverse to 149.50 and 150.10.
For short positions:
Sell when the price reaches 149.23 (red line on the chart) and take profit at 148.80. Pressure will return in the event of intervention by the Bank of Japan.
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 149.50, but the MACD line should be in the overbought area as only by that will the market reverse to 149.23 and 148.80.
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.