15.01.202409:02 Forex Analysis & Reviews: Analysis and trading tips for USD/JPY on January 15

Analysis of transactions and tips for trading USD/JPY

The test of 144.84, coinciding with the drop of the MACD line from zero, provoked a sell signal that led to a price decrease of around 40 pips. Meanwhile, purchases on the rebound from 144.44 resulted in a rise of about 40 pips.

Inflation data in the US put pressure on dollar, but sellers failed to consolidate in the area of the weekly low, indicating the weakness of yen. Today's data on Japan's monetary aggregate and equipment orders also did not help change the situation. Market players will likely use the decline to accumulate long positions in continuation of the bullish trend.

For long positions:

Buy when the price hits 145.48 (green line on the chart) and take profit at 146.16. Growth will occur in continuation of the trend, especially after the active defense of the daily low.

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 145.09, but the MACD line should be in the oversold area as only by that will the market reverse to 145.48 and 146.16.

For short positions:

Sell when the price reaches 145.09 (red line on the chart) and take profit at 144.44. Pressure will return in the case of an unsuccessful consolidation at the daily high.

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 145.48, but the MACD line should be in the overbought area as only by that will the market reverse to 145.09 and 144.44.

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.