FX.co ★ Analysis and trading tips for USD/JPY on August 24

Analysis of transactions and tips for trading USD/JPY

The test of 145.50 earlier in the day, coinciding with the decline of the MACD line from zero, prompted a sell signal that led to a price decrease of over 20 pips.

Good business activity data from Japan exerted pressure on USD/JPY, which may intensify since it became clear that activity in the US continues to decrease and slow down. And if the reports on initial jobless claims and durable goods orders indicate problems in the labor market, dollar demand will dip further, leading to a new wave of decline in the pair.

For long positions:

Buy when the price hits 145.23 (green line on the chart) and take profit at 145.72. Further growth will occur in the event of very good data from the US labor market. 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 144.93, but the MACD line should be in the oversold area as only by that will the market reverse to 145.23 and 145.72.

For short positions:

Sell when the price reaches 144.93 (red line on the chart) and take profit at 144.43. Pressure will remain 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 145.23, but the MACD line should be in the overbought area as only by that will the market reverse to 144.93 and 144.43.

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.