Analysis of transactions and tips for trading USD/JPY
The test of 142.81, coinciding with the rise of the MACD line from zero, provoked a buy signal that resulted in a price increase of over 40 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. However, today, the Bank of Japan left interest rates unchanged at -0.1%, leading to a sharp decline in yen. The new forecasts also gave no hints of policy changes in the coming year.
Dollar demand may also return amid good data on the US real estate market.
For long positions:
Buy when the price hits 143.91 (green line on the chart) and take profit at 145.05. Growth will occur only amid a soft approach of the Bank of Japan to its monetary policy.
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 143.21, but the MACD line should be in the oversold area as only by that will the market reverse to 143.91 and 145.05.
For short positions:
Sell when the price reaches 143.21 (red line on the chart) and take profit at 142.35. Pressure may remain, but it will not increase significantly.
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 143.76, but the MACD line should be in the overbought area as only by that will the market reverse to 143.21 and 142.35.
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.