FX.co ★ Analysis and trading tips for USD/JPY on August 29

Analysis of transactions and tips for trading USD/JPY

Further growth became limited because the test of 146.53 coincided with the sharp rise of the MACD line from zero.

Although Japan's unemployment data for July jumped to 2.7%, which exceeds expectations, it did not particularly affect the market direction. Most likely, the situation will continue to evolve in favor of dollar for a longer time. Good data on US CPI may lead to a more robust upward movement in USD/JPY.

For long positions:

Buy when the price hits 146.59 (green line on the chart) and take profit at 147.06. Growth will occur as part of a developing 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 146.20, but the MACD line should be in the oversold area as only by that will the market reverse to 146.59 and 147.06.

For short positions:

Sell when the price reaches 146.20 (red line on the chart) and take profit at 145.66. Pressure will return in the event of breaking the daily low. 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 146.59, but the MACD line should be in the overbought area as only by that will the market reverse to 146.20 and 145.66.

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.