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

Analysis of transactions and tips for trading USD/JPY

Further growth became limited because the test of 149.29 took place when the MACD line moved upward quite sharply from zero. In the afternoon, another test occurred, but this time the MACD line rose from zero, provoking a buy signal. This led to a price increase of nearly 50 pips.

Inflation in Japan reportedly rose to 3.3% y/y, leading to a slight increase in yen. However, weak PMI data offset the movement. If the upcoming business activity data from the US exceed expectations, USD/JPY will continue to rise.

For long positions:

Buy when the price hits 149.50 (green line on the chart) and take profit at 149.99. Growth will occur in the event of very strong data from the US. However, when buying, ensure that the MACD line lies above zero or rises from it.

Also consider buying USD/JPY after two consecutive price tests of 149.19, but the MACD line should be in the oversold area as only by that will the market reverse to 149.50 and 149.99.

For short positions:

Sell when the price reaches 149.19 (red line on the chart) and take profit at 148.71. Pressure will increase in the case of poor US statistics and unsuccessful consolidation at the daily high. 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 149.50, but the MACD line should be in the overbought area as only by that will the market reverse to 149.19 and 148.71.

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.