FX.co ★ USD/JPY: Simple Trading Tips for Beginners on October 23. Analysis of Yesterday's Forex Deals

Analysis of Deals and Trading Tips for the Japanese Yen

The test of the 151.10 price level occurred when the MACD indicator had moved significantly above the zero mark, which limited the pair's upward potential. For this reason, I did not buy the dollar. A short time later, another test of this price took place while the MACD was in the overbought area, which led to the implementation of scenario #2 for selling. However, after a 20-pip correction, the pressure on the pair decreased. Today, the dollar has gained significantly against the Japanese yen, continuing the upward trend after the Federal Reserve abandoned its ultra-loose monetary policy. It's best to continue trading with the trend, buying the dollar on pullbacks. As for the intraday strategy, I will rely more on the implementation of scenarios #1 and #2.

Buy Signal

Scenario #1: I plan to buy USD/JPY today upon reaching the entry point around 152.54 (green line on the chart) with a target of rising to 153.20 (thicker green line on the chart). Around 153.20, I plan to exit buys and open sell positions in the opposite direction (expecting a movement of 30-35 pips downward from this level). Further growth of the pair can be expected, but it's best to buy during corrections. Important! Before buying, ensure the MACD indicator is above the zero mark and starting to rise.

Scenario #2: I also plan to buy USD/JPY today in the event of two consecutive tests of the 152.03 price level when the MACD indicator is in the oversold area. This will limit the pair's downward potential and lead to an upward market reversal. Growth can be expected towards the opposite levels of 152.54 and 153.20.

Sell Signal

Scenario #1: I plan to sell USD/JPY today only after breaking below the 152.03 level (red line on the chart), which should lead to a quick drop in the pair. The key target for sellers will be 151.35, where I plan to exit the sell positions and immediately open buy positions in the opposite direction (expecting a movement of 20-25 pips upward from this level). Pressure on the pair will return in case of weak activity around the daily high. Important! Before selling, ensure that the MACD indicator is below the zero mark and starting to decline from it.

Scenario #2: I also plan to sell USD/JPY today in the event of two consecutive tests of the 152.54 price level when the MACD indicator is in the overbought area. This will limit the pair's upward potential and lead to a market reversal downward. A decline can be expected towards the opposite levels of 152.03 and 151.35.

What's on the Chart:

Thin Green Line: The entry price at which the trading instrument can be bought.

Thick Green Line: The estimated price at which take-profit orders can be set, or profits can be manually secured, as further growth above this level is unlikely.

Thin Red Line: The entry price for selling the trading instrument.

Thick Red Line: The estimated price at which take-profit orders can be set, or profits can be manually secured, as further declines below this level are unlikely.

MACD Indicator: Considering overbought and oversold zones is crucial when entering the market.

Important Note for Beginners:

Novice traders in the Forex market must be cautious when making market entry decisions. It is best to stay out of the market before the release of major fundamental reports to avoid getting caught in sharp price movements. If you decide to trade during news releases, always set stop-loss orders to minimize losses. You can quickly lose your entire deposit without stop-loss orders, especially if you do not use money management and trade with large volumes.

And remember, successful trading requires a clear trading plan, like the one I've presented above. Spontaneous trading decisions based on the current market situation are inherently a losing strategy for an intraday trader.