FX.co ★ USD/JPY: Simple trading tips for beginner traders on June 4th (US session)

Analysis of transactions and tips on trading the Japanese yen

The price test of 155.19 came when the MACD indicator went down a lot from zero, limiting the pair's further downward potential. For this reason, I did not sell the dollar, ,but after that, the pair went down quite well. There are a lot of statistics on the United States this afternoon, but all of them are secondary, so there is little help for the dollar. Figures on the vacancy rate and labor turnover from the Bureau of Labor Statistics, changes in the volume of production orders in the United States and the economic optimism index from RCM/TIPP are expected. Weak indicators will further push the dollar down, allowing new weekly lows to be updated. As for the intraday strategy, I plan to act based on implementing scenarios No. 1 and No. 2.

Buy signal

Scenario No. 1: I plan to buy USD/JPY today when I reach the entry point of 155.25 (green line) to grow to 156.17 (thicker green line on the chart). In the area of 156.17, I will exit purchases and open sales in the opposite direction (counting on a movement of 30-35 points in the opposite direction from the level). It is unlikely that it will be possible to count on the pair's growth today, although the lower the trade is conducted, the more attractive the dollar seems. Important! Before buying, ensure the MACD indicator is above the zero mark and is just starting to grow from it.

Scenario No. 2: I also plan to buy USD/JPY today for two consecutive price tests of 154.68 when the MACD indicator will be in the oversold area. This will limit the pair's downward potential and lead to a reverse upward market reversal. We can expect an increase to the opposite levels of 155.25 and 156.17.

A sell signal

Scenario No. 1: I plan to sell USD/JPY today after updating the level of 154.68 (red line on the chart), leading to a rapid decline in the pair. The key target of sellers will be the level of 153.85, where I will exit sales and immediately open purchases in the opposite direction (counting on a movement of 20-25 points in the opposite direction from the level). The pressure on the pair will return in case of weak US data. Important! Before selling, ensure the MACD indicator is below the zero mark and is just beginning to decline.

Scenario No. 2: I also plan to sell USD/JPY today for two consecutive price tests of 155.25 at a time when the MACD indicator will be in the overbought area. This will limit the pair's upward potential and lead to a reverse downward reversal of the market. We can expect a decline to the opposite levels of 154.68 and 153.85.

What's on the chart:

Thin green line is the entry price at which you can buy a trading instrument.

Thick green line is the estimated price at which you can place a Take profit or fix profits yourself since further growth is unlikely above this level.

Thin red line is the entry price at which a trading instrument can be sold.

Thick red line is the estimated price at which you can place a Take profit or fix profits yourself since further decline is unlikely below this level.

MACD indicator. When entering the market, it is important to be guided by overbought and oversold zones.

Important. Novice forex traders need to make decisions about entering the market very carefully. Before releasing important fundamental reports, it is best to stay out of the market to avoid sharp fluctuations in the exchange rate. If you decide to trade during the news release, always place stop orders to minimize losses. You must place stop orders to avoid losing the entire deposit quickly, especially if you do not use money management but trade in large volumes.

Remember that for successful trading, you need a clear trading plan, following the example I presented above. Making spontaneous trading decisions based on the current market situation is an inherently losing strategy for an intraday trader.