Analysis of transactions and tips for trading USD/JPY
The test of 141.89, coinciding with the rise of the MACD line from zero, provoked a buy signal that resulted in a price increase of over 50 pips. Meanwhile, sales on the rebound at the level of 142.51 led to a sharp reversal and a decline of more than 70 pips.
USD/JPY continued to trade in a horizontal channel due to mixed activity data in Japan, where the manufacturing index contracted and remained below 50 points, while the service index demonstrated good growth. Similar indicators from the US gave the same result.
Today, the NAHB housing market index for the US will come out, but it may not affect market sentiment much.
For long positions:
Buy when the price hits 142.33 (green line on the chart) and take profit at 142.82. Growth may not occur, but buyers will certainly attempt to break out of the local high.
When buying, ensure that the MACD line lies above zero or rises from it. Also consider buying USD/JPY after two consecutive price tests of 141.89, but the MACD line should be in the oversold area as only by that will the market reverse to 142.33 and 142.82.
For short positions:
Sell when the price reaches 141.89 (red line on the chart) and take profit at 141.40. Pressure will increase in the case of an unsuccessful attempt to break out of the sideways channel.
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 142.33, but the MACD line should be in the overbought area as only by that will the market reverse to 141.89 and 141.40.
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.