FX.co ★ Analysis and trading tips for USD/JPY on November 10

Analysis of transactions and tips for trading USD/JPY

Further growth became limited because the test of 151.12 earlier in the day coincided with the sharp upward move of the MACD line from zero. Sometime after, another test took place, during which the MACD line fell from the overbought area, prompting a signal to sell. This led to a price decrease of around 25 pips. No other market signal appeared for the rest of the day.

Due to the empty macroeconomic calendar in Japan, market players will focus on key data from the US, such as the consumer sentiment index and the inflation expectations index from the University of Michigan. If the figures exceed expectations, the bull market will develop further. There will also be speeches from FOMC members Raphael Bostic and Lori Logan.

For long positions:

Buy when the price hits 151.54 (green line on the chart) and take profit at 151.95. Growth will occur in continuation of the recent bullish scenario. 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 151.31, but the MACD line should be in the oversold area as only by that will the market reverse to 151.54 and 151.95.

For short positions:

Sell when the price reaches 151.31 (red line on the chart) and take profit at 150.86. Pressure will return in the event of a central bank intervention. However, 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 151.54, but the MACD line should be in the overbought area as only by that will the market reverse to 151.31 and 150.86.

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.