Analysis and trading tips for USD/JPY on December 21 (US session)

Analysis of transactions and trading tips on USD/JPY

No market signal appeared because the pair fell short of 143.35.

Further decline can be expected considering the consistent demand for yen in the past few days. In addition, poor data on US jobless claims and Q3 GDP will increase pressure on dollar, allowing yen to continue its rise. The report on Philadelphia Fed's manufacturing index will not change the balance of power in the market. Inactivity at the daily low will also keep trading within the channel.

For long positions:

Buy when the price hits 143.22 (green line on the chart) and take profit at 143.85. Growth will occur after very strong US statistics and upward revisions to the GDP data.

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 142.84, but the MACD line should be in the oversold area as only by that will the market reverse to 143.22 and 143.85.

For short positions:

Sell when the price reaches 142.84 (red line on the chart) and take profit at 142.29. Pressure will persist if US data disappoints.

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 143.22, but the MACD line should be in the overbought area as only by that will the market reverse to 142.84 and 142.29.

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.