06.03.202413:18 Forex-elemzések és áttekintések: Analysis and trading tips for USD/JPY on March 6 (US session)

Analysis of transactions and trading tips on USD/JPY

The test of 149.47, coinciding with the move of the MACD line away from the oversold area, provoked a buy signal that led to a price increase of over 30 pips.

Strong employment data from ADP, along with the speech from Fed Chairman Jerome Powell, who will likely inform Congress that the fight against inflation has not ended, will increase dollar demand, which will offset all the previous losses. Meanwhile, the speech of FOMC member Mary Daly may be ignored by market players.

For long positions:

Buy when the price hits 149.87 (green line on the chart) and take profit at 150.43. Growth will occur in the case of a firm stance by Fed Chairman Jerome Powell and strong labor market data for 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 149.58, but the MACD line should be in the oversold area as only by that will the market reverse to 149.87 and 150.43.

For short positions:

Sell when the price reaches 149.58 (red line on the chart) and take profit at 149.01. Pressure will return in the case of very weak statistics from the US.

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 149.87, but the MACD line should be in the overbought area as only by that will the market reverse to 149.58 and 149.01.

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.