Analysis of Trades and Trading Tips for the Japanese Yen
The specified levels were not tested in the first half of the day. Pressure on the dollar weakened ahead of the release of significant statistics, giving buyers a chance to resume the uptrend. This will require reasonably good figures for non-farm payrolls in May and the unemployment rate in the US. If weak statistics are released, which is also possible considering the seasonality of spring data, pressure on USD/JPY will increase, leading to another wave of decline for the trading instrument. Regarding the intraday strategy, I plan to act based on Scenario No. 1, ignoring the MACD indicator readings.
Buy Signal
Scenario No. 1: Today, I plan to buy USD/JPY upon reaching the entry point around 155.75 (green line on the chart), with the target of rising to the level of 156.64 (thicker green line on the chart). Around 156.64, I will exit purchases and open sales in the opposite direction (expecting a 30-35 pip move from the level). The pair's growth today can be expected after good US labor market statistics. Important! Before buying, make sure the MACD indicator is above the zero mark and just starting to rise from it.
Scenario No. 2: I also plan to buy USD/JPY today in case of two consecutive tests of the 155.24 price when the MACD indicator is in the oversold area. This will limit the pair's downward potential and lead to a market reversal upwards. Growth to the opposite levels of 155.75 and 156.65 can be expected.
Sell Signal
Scenario No. 1: Today, I plan to sell USD/JPY after updating the 155.24 level (red line on the chart), which will lead to a quick decline in the pair. The key target for sellers will be the 154.30 level, where I will exit sales and open purchases immediately in the opposite direction (expecting a 20-25 pip move from the level). Sellers will show strength in case of weak US data. Important! Before selling, make sure the MACD indicator is below the zero mark and just starting to fall from it.
Scenario No. 2: I also plan to sell USD/JPY today in case of two consecutive tests of the 155.75 price when the MACD indicator is in the overbought area. This will limit the pair's upward potential and lead to a market reversal downwards. A decline to the opposite levels of 155.24 and 154.30 can be expected.
Chart Explanation:
Thin Green Line: Entry price at which you can buy the trading instrument.Thick Green Line: Estimated price where you can set Take Profit or independently fix profits, as further growth above this level is unlikely.Thin Red Line: Entry price at which you can sell the trading instrument.Thick Red Line: Estimated price where you can set Take Profit or independently fix profits, as further decline below this level is unlikely.MACD Indicator: When entering the market, it is important to be guided by overbought and oversold zones.Important: Beginner forex traders should be very cautious when making market entry decisions. It is best to stay out of the market before the release of important fundamental reports to avoid getting caught in sharp price swings. If you decide to trade during news releases, always set stop orders to minimize losses. Without stop orders, you can quickly lose your entire deposit, especially if you don't use money management and trade large volumes.
And remember, successful trading requires a clear trading plan, like the one presented above. Spontaneous trading decisions based on the current market situation are inherently a losing strategy for an intraday trader.