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Analysis of transactions and tips for trading USD/JPY
The test of 145.69, coinciding with the rise of the MACD line from zero, provoked a buy signal that led to a price increase of around 80 pips. Meanwhile, sales on the rebound from 146.32 resulted in a 30-pip correction.
Market sentiment shifted abruptly after expectations about the Bank of Japan abandoning its accommodative policy at the beginning of next year started to change. Although the talks about this already began last week, the reaction just started because the market remained focused on the Fed's decision on interest rates. As for today, US inflation data lies ahead, and growth in the indicator will likely provoke another rise in USD/JPY. But if the number shows a sharp decline, dollar demand may weaken, leading to a decrease in the pair.
For long positions:
Buy when the price hits 145.69 (green line on the chart) and take profit at 146.43. Growth may occur, depending on the inflation data in the US.
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 144.99, but the MACD line should be in the oversold area as only by that will the market reverse to 145.69 and 146.43.
For short positions:
Sell when the price reaches 144.99 (red line on the chart) and take profit at 144.14. Pressure will increase in the case of a decrease in US inflation.
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 145.69, but the MACD line should be in the overbought area as only by that will the market reverse to 144.99 and 144.14.
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.
