FX.co ★ Apl123 | USD/JPY

Trading the USD/JPY pair requires a keen understanding of both technical indicators and market sentiment. Today, I’m focusing on a critical support level at 151.49. If the price breaks below this level, it could trigger a significant sell-off, leading to a rapid decline. The rationale behind this approach lies in the established support that, if breached, could lead to a cascade of selling pressure as stop-loss orders are triggered and traders react to the downward momentum. As I prepare to enter a sell position, it’s essential to monitor the MACD indicator closely. A strong sell signal occurs when the MACD falls below the zero line and begins its downward movement, indicating that bearish momentum is building. This is crucial for confirming that the market sentiment aligns with my trading strategy before entering a position. Once the price breaks below 151.49, my immediate target for the sell position will be the 151.07 level. This target is strategically chosen based on previous price action, which suggests this area may act as a minor support level. As we approach this target, I’ll be watching for signs of a potential reversal. If the price reaches 151.07, I plan to exit my sell position and immediately open a buy order. In the buy trade, I’ll be targeting a modest gain of 20-25 pips. This approach leverages the anticipated rebound from 151.07, capitalizing on the market’s tendency to retrace after a significant move. However, I’ll remain vigilant, particularly around the daily high. If the market shows weak activity or fails to hold above previous highs, it could signal a return of selling pressure, which could impact both my sell and buy strategies.