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

Analysis of transactions and tips for trading USD/JPY

The test of 149.23 coincided with the decline of the MACD line from zero, prompting a signal to sell. However, no price decrease occurred yesterday.

The sell-off only happened today after news emerged that the central bank regained control of the market. It announced an unscheduled bond-buying operation as a sign of its determination to slow down the yield rise. It proposed to buy securities worth 300 billion yen in its first unscheduled purchase operation since August 3. Rumors also circulated that the Bank of Japan will end its negative interest rate policy early next year, despite the belief of policymakers that a stimulus will support the still unstable economic recovery.

For long positions:

Buy when the price hits 149.02 (green line on the chart) and take profit at 149.57. Growth will occur after good statistics from the US.

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 148.64, but the MACD line should be in the oversold area as only by that will the market reverse to 149.02 and 149.57.

For short positions:

Sell when the price reaches 148.64 (red line on the chart) and take profit at 148.26. Pressure will persist if traders protect the major resistance level around 149.

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 149.02, but the MACD line should be in the overbought area as only by that will the market reverse to 148.64 and 148.26.

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.