Analysis of transactions and trading tips on USD/JPY
The test of 146.31, coinciding with the rise of the MACD line from zero, provoked a buy signal that led to an increase towards 146.77.
Further movement will depend on the speech of FOMC member Christopher Waller, as his tone could cool the overbought market and cause a slight downward correction. In the case that Waller talks about the need to wait, USD/JPY will continue to rise, ending the chances of a correction.
For long positions:
Buy when the price hits 146.86 (green line on the chart) and take profit at 147.31. Growth will occur in continuation of the upward trend.
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 146.56, but the MACD line should be in the oversold area as only by that will the market reverse to 146.86 and 147.31.
For short positions:
Sell when the price reaches 146.56 (red line on the chart) and take profit at 146.15. Although pressure will unlikely return, a small correction may be seen after the speech of Christopher Waller.
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 146.86, but the MACD line should be in the overbought area as only by that will the market reverse to 146.56 and 146.15.
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.