Analysis of transactions and tips for trading USD/JPY
The test of 148.84, coinciding with the rise of the MACD line from zero, provoked a buy signal that led to a price increase of 50 pips. On the other hand, sales on the rebound from 149.36 resulted in a decline of nearly 25 pips.
Pressure on yen came from the remarks of Bank of Japan Deputy Governor Shinichi Uchida, who stated that more time would be needed to normalize policy. As for the speech of Bank of Japan Governor Kazuo Ueda today, which indicates that financial conditions in Japan will remain accommodative even after the central bank puts an end to the negative interest rate regime, yen reacted quite calmly to it. Considering the empty macroeconomic calendar today, buyers will likely attempt to continue the upward movement of USD/JPY.
For long positions:
Buy when the price hits 149.51 (green line on the chart) and take profit at 150.00. Strong growth will occur in continuation of yesterday's 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 149.21, but the MACD line should be in the oversold area as only by that will the market reverse to 149.51 and 150.00.
For short positions:
Sell when the price reaches 149.21 (red line on the chart) and take profit at 148.72. Pressure will return in the case of unsuccessful bullish activity around the local high. However, be cautious with selling against the trend even at the end of the week.
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 149.51, but the MACD line should be in the overbought area as only by that will the market reverse to 149.21 and 148.72.
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.