Analysis of transactions and tips for trading USD/JPY
The test of 149.69 took place when the MACD line moved upward from zero, prompting a signal to buy. However, a strong price increase did not occur, leading to losses. Closer to mid-day, another price test occurred, but at 149.50. It led to a sell signal and resulted in a decrease of about 15 pips. Buyers quickly returned to the market after the movement. A similar test in the afternoon compensated for the previous losses, as the upward movement amounted to over 20 pips.
The activity of the Bank of Japan around 150 limited the further upward potential of the pair. Today, markets will focus on the housing market data in the US, where very positive indicators will trigger new long positions in the pair.
For long positions:
Buy when the price hits 149.94 (green line on the chart) and take profit at 150.27. Growth will occur in continuation of the bull market, supported by strong data from the US. However, when buying, ensure that the MACD line lies above zero or just start to rise from it.
Also consider buying USD/JPY after two consecutive price tests of 149.76, but the MACD line should be in the oversold area as only by that will the market reverse to 149.94 and 150.27.
For short positions:
Sell when the price reaches 149.76 (red line on the chart) and take profit at 149.39. Pressure will return in the event of active intervention by the Bank of Japan and weak data from the US. However, when selling, ensure that the MACD line lies below zero or drop down from it.
Also consider selling USD/JPY after two consecutive price tests of 149.94, but the MACD line should be in the overbought area as only by that will the market reverse to 149.76 and 149.39.
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.