Analysis of transactions and tips on trading the Japanese yen
The price test of 156.76 came when the MACD indicator went down a lot from zero and had been recovering from the oversold area for quite a long time, which, as part of an upward trend, gave an excellent chance to implement the No. 2 buy scenario. As a result, the pair grew by 20 points. Today's data on the index of prices for services among Japanese corporations should have been addressed, although the figures turned out to be much better than economists' forecasts. The dollar, which has fallen significantly in price against the yen, is in demand again, and the longer the trade is sideways, the higher the chances of a new upward leap and an update of annual highs will be. However, all this may happen today only in the afternoon after the release of important statistics on the United States. As for the intraday strategy, I will rely more on implementing scenarios No. 1 and No. 2.
Buy signal
Scenario No. 1: I plan to buy USD/JPY today when I reach the entry point of 156.97 (green line) to grow to 157.64 (thicker green line on the chart). In the area of 157.64, I will exit purchases and open sales in the opposite direction (counting on a movement of 30-35 points in the opposite direction from the level). Today, the pair's growth can be counted on as part of continuing the trend. Important! Before buying, ensure the MACD indicator is above the zero mark and is just starting to grow from it.
Scenario No. 2: I also plan to buy USD/JPY today if there are two consecutive price tests of 156.64 at a time when the MACD indicator is in the oversold area. This will limit the pair's downward potential and lead to an upward market reversal. We can expect an increase to the opposite levels of 156.97 and 157.64.
A sell signal
Scenario No. 1: I plan to sell USD/JPY today only after updating the level of 156.64 (red line on the chart), leading to a rapid decline in the pair. The critical goal of sellers will be the level of 156.15, where I'm going to exit sales and immediately open purchases in the opposite direction (counting on a movement of 20-25 points in the opposite direction from the level). The pressure on the pair may return in case of an unsuccessful consolidation in the area of the daily maximum. Important! Before selling, ensure that the MACD indicator is below the zero mark and is just beginning its decline.
Scenario No. 2: I also plan to sell USD/JPY today for two consecutive price tests of 156.97 when the MACD indicator will be in the overbought area. This will limit the upward potential of the pair and lead to a downward reversal of the market. We can expect a decline to the opposite levels of 156.64 and 156.15.
What's on the chart:
Thin green line is the entry price at which you can buy a trading instrument.
Thick green line is the estimated price where you can place Take profit or fix profits yourself, since further growth is unlikely above this level.
Thin red line is the entry price at which a trading instrument can be sold.
Thick red line is the estimated price at which you can place a Take profit or fix profits yourself since further decline is unlikely below this level.
MACD indicator. When entering the market, it is important to be guided by overbought and oversold zones.
Important. Novice forex traders need to make decisions about entering the market very carefully. Before releasing important fundamental reports, it is best to stay out of the market to avoid sharp fluctuations in the exchange rate. If you decide to trade during the news release, always place stop orders to minimize losses. You must place stop orders to avoid losing the entire deposit quickly, especially if you do not use money management but trade in large volumes.
Remember that for successful trading, you need a clear trading plan, following the example I presented above. Making spontaneous trading decisions based on the current market situation is an inherently losing strategy for an intraday trader.