Analysis of transactions and tips for trading USD/JPY

Further decline became limited because the test of 146.74 coincided with the sharp descent of the MACD line from zero. Sometime later, another test occurred, and this time the MACD line lay in the oversold area, provoking a buy signal. This resulted in a price increase of over 40 pips. Another test took place in the afternoon, but even though the MACD line just started to move downward, prompting a sell signal, the pair did not fall, leading to losses.

The speech of Bank of Japan Deputy Governor Ryozo Himino did not bring the expected result, even though he clearly hinted that the era of negative interest rates will soon end. Most likely, market players focus more on the ADP data on the US labor market, which may come out rather weak, allowing a decline to 146.70 and yesterday's low. But if the figure comes out strong, dollar demand will return, leading to a sharp upward move of the pair.

For long positions:

Buy when the price hits 147.29 (green line on the chart) and take profit at 147.96. Growth will occur after a strong data on the US labor market. However, 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 146.86, but the MACD line should be in the oversold area as only by that will the market reverse to 147.29 and 147.96.

For short positions:

Sell when the price reaches 146.86 (red line on the chart) and take profit at 146.37. Pressure will return after a breakdown of yesterday's low. However, 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 147.29, but the MACD line should be in the overbought area as only by that will the market reverse to 146.86 and 146.37.

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.