17.05.202417:14 Forex Analysis & Reviews: USD/JPY: Simple trading tips for novice traders on May 17th (US session)

Analysis of trades and tips for trading the Japanese yen

The test of the 155.94 price level occurred when the MACD had moved significantly up from the zero mark, limiting the pair's further upward potential. For this reason, I did not buy the dollar, and I was right. The upward movement did not occur, and it is unlikely to happen in the second half of the day, as there are no other significant US statistics apart from the leading indicators index. It is better to stick to trading within the sideways channel and not to expect a good directional move today – especially not a decline in the dollar against the yen. As for the intraday strategy, I plan to act based on scenarios No. 1 and No. 2.

Buy Signal

Scenario No. 1: Today, I plan to buy USD/JPY at the entry point around 156.01 (green line on the chart), with a target of rising to 156.60 (thicker green line). Around 156.60, I will exit the buys and open sell positions in the opposite direction (expecting a movement of 30-35 points in the opposite direction from the level). The pair's rise today can be expected to continue the trend, but a strong movement is unlikely. Important! Before buying, ensure the MACD indicator is above the zero mark and starting to rise.

Scenario No. 2: I also plan to buy USD/JPY today in case of two consecutive tests of the 155.63 price when the MACD indicator is in the oversold area. This will limit the pair's downward potential and lead to an upward market reversal. Expect a rise to the opposite levels of 156.01 and 156.60.

Sell Signal

Scenario No. 1: Today, I plan to sell USD/JPY after breaking the 155.63 level (red line on the chart), leading to a quick drop in the pair. The key target for sellers will be 155.09, where I will exit the sales and open buy positions in the opposite direction (expecting a movement of 20-25 points in the opposite direction from the level). Pressure on the pair will return if there is a failure to hold around the daily high. Important! Before selling, please ensure the MACD indicator is below the zero mark and starting to decline.

Scenario No. 2: I also plan to sell USD/JPY today in case of two consecutive tests of the 156.01 price when the MACD indicator is in the overbought area. This will limit the pair's upward potential and lead to a market reversal downward. Expect a decline to the opposite levels of 155.63 and 155.09.

What the chart shows:

• Thin green line: Entry price for buying the trading instrument.
• Thick green line: Estimated price for setting Take Profit or manually fixing profits, as further growth above this level is unlikely.
• Thin red line: Entry price for selling the trading instrument.
• Thick red line: Estimated price for setting Take Profit or manually fixing profits, as further decline below this level is unlikely.
• MACD Indicator: When entering the market, it is crucial to consider overbought and oversold areas.

Important: Beginner traders in the Forex market should be cautious when making market entry decisions. It is best to stay out of the market before important fundamental reports to avoid sharp price fluctuations. If you decide to trade during news releases, always set stop-loss orders to minimize losses. Without stop-loss orders, you can quickly lose your entire deposit, especially if you do not use money management and trade large volumes.

Remember, successful trading requires a clear plan, like the one I presented above. Making spontaneous trading decisions based on the current market situation is an inherently losing strategy for an intraday trader.