FX.co ★ Analysis and trading tips for USD/JPY on September 11

Analysis of transactions and tips for trading USD/JPY

The test of 147.35 on Friday, coinciding with the rise of the MACD line from zero, prompted a buy signal that led to a price increase.

Changes in Japan's money supply matched the forecasts, while the changes in equipment orders came out weaker than expected. However, market players ignored the two data, so no strong movement occurred in the pair.

Given the empty macroeconomic calendar in the afternoon, dollar demand will likely return, thereby continuing the upward correction after a massive sell-off. Traders better lean more towards buying.

For long positions:

Buy when the price hits 146.28 (green line on the chart) and take profit at 146.89. Growth may occur as the bullish market remains in play.

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 145.73, but the MACD line should be in the oversold area as only by that will the market reverse to 146.28 and 146.89.

For short positions:

Sell when the price reaches 145.73 (red line on the chart) and take profit at 145.27. Pressure may persist amid expectations of significant intervention by the central bank.

When selling, ensure that the MACD line lies below zero or drops down from it. Also consider selling USD/JPY after two consecutive price tests of 146.28, but the MACD line should be in the overbought area as only by that will the market reverse to 145.73 and 145.27.

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.