Analysis of transactions and trading tips on USD/JPY
The test of 148.36, coinciding with the decline of the MACD line from zero, provoked a sell signal that led to a price decrease of around 50 pips. The pair managed to hit 147.85, but then it turned around and started to rise.
There may be fewer buyers of yen since Japan's inflation data came out, and moving further up will be more challenging. Although the current technical correction seems to be a good reason to accumulate positions, the upcoming reports from the US could further strengthen dollar's position. Data on home sales in the US secondary market will not be important, but data on consumer sentiment and inflation expectations from the University of Michigan could cause yen to go down, especially if the report indicates a sharp spike in inflation. Pressure in USD/JPY will increase only if the data matches the forecasts.
For long positions:
Buy when the price hits 148.39 (green line on the chart) and take profit at 149.09. Growth will occur after very strong data from the US.
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 147.86, but the MACD line should be in the oversold area as only by that will the market reverse to 148.39 and 149.09.
For short positions:
Sell when the price reaches 147.86 (red line on the chart) and take profit at 147.29. Pressure will continue if US data matches the forecasts.
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 148.39, but the MACD line should be in the overbought area as only by that will the market reverse to 147.86 and 147.29.
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.