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FX.co ★ Analysis and trading tips for USD/JPY on August 23

Analysis and trading tips for USD/JPY on August 23

Analysis of transactions and tips for trading USD/JPY

Yen rose in price as business activity data in Japan's service sector exceeded expectations. However, the relatively high demand for dollar, observed recently ahead of the symposium in Jackson Hole, limited USD/JPY's downward potential.

A lot of important data lies ahead, but attention should be pair more to the business activity data in the service and manufacturing sectors of the US, as they may prompt another surge in the pair upwards, assuming positive statistics.

Analysis and trading tips for USD/JPY on August 23

For long positions:

Buy when the price hits 145.79 (green line on the chart) and take profit at 146.31. Further growth will be in line with the development of the upward trend. However, when buying, ensure that the MACD line lies above zero or just starts to rise from it.

Also consider buying USD/JPY after two consecutive price tests of 145.50, but the MACD line should be in the oversold area as only by that will the market reverse to 145.79 and 146.31.

For short positions:

Sell when the price reaches 145.50 (red line on the chart) and take profit at 145.00. Pressure will resume in case of weak US statistics. However, when selling, traders must ensure that the MACD line lies below zero or drops down from it.

Also consider selling USD/JPY after two consecutive price tests of 145.79, but the MACD line should be in the overbought area as only by that will the market reverse to 145.50 and 145.00.

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.

*The market analysis posted here is meant to increase your awareness, but not to give instructions to make a trade
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