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Analysis of transactions and tips for trading USD/JPY
Further growth became limited because the test of 147.29 coincided with the sharp upward move of the MACD line from zero. Sometime later, another test occurred, but the MACD line went in the negative area, provoking a sell signal. The decline could be observed until today's Asian session.
The breakdown of the monthly low affected the upward potential of dollar, so be cautious with purchases in the current conditions. Only good data on US jobless claims and wholesale trade inventories will help dollar regain its positions.
For long positions:
Buy when the price hits 146.51 (green line on the chart) and take profit at 147.47. Growth will occur, but it will not very strong, especially after a significant drop.
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 145.91, but the MACD line should be in the oversold area as only by that will the market reverse to 146.51 and 147.47.
For short positions:
Sell when the price reaches 145.91 (red line on the chart) and take profit at 145.32. Pressure will persist, but it will be better to act on corrections.
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 146.51, but the MACD line should be in the overbought area as only by that will the market reverse to 145.91 and 145.32.
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.
InstaForex analytical reviews will make you fully aware of market trends! Being an InstaForex client, you are provided with a large number of free services for efficient trading.
