FX.co ★ Analysis and trading tips for USD/JPY on January 23

Analysis of transactions and tips for trading USD/JPY

Further decline became limited because the test of 147.85 coincided with the sharp downward move of the MACD line from zero. Market volatility rose briefly after the Bank of Japan announced its decision to keep interest rates unchanged at their negative level. However, during the press conference, the governor stated that the strategy for policy normalization remains unchanged, causing yen to grow and dollar to plummet. Most likely, the correction in the pair will continue, but the situation may change soon because the lower USD/JPY dips, the more attractive the prices will be for buyers.

For long positions:

Buy when the price hits 147.60 (green line on the chart) and take profit at 148.38. Although growth may not be very strong, the lower dollar goes, the more attention it will attract.

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 147.11, but the MACD line should be in the oversold area as only by that will the market reverse to 147.60 and 148.38.

For short positions:

Sell when the price reaches 147.11 (red line on the chart) and take profit at 146.55. Pressure will return in the case of an unsuccessful consolidation around 147.60.

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 147.60, but the MACD line should be in the overbought area as only by that will the market reverse to 147.11 and 146.55.

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.