Analysis of Trades and Trading Tips for the Japanese Yen
There were no tests of the levels I mentioned earlier in the day.
With no new signals or benchmarks, traders preferred to adopt a wait-and-see stance. Perhaps this may change later in the day following the release of significant U.S. statistics. The U.S. Consumer Confidence Index data is expected, which could trigger volatility—especially if the figures diverge significantly from economists' forecasts. Strong statistics would support buying the dollar and selling the yen. Conversely, disappointing data would reinforce the strengthening yen trend. Regarding intraday strategies, I plan to focus on Scenario #1 and Scenario #2.
Buy Signal
Scenario #1:
Today, I plan to buy USD/JPY upon reaching the 157.01 level (green line on the chart), aiming for a rise toward 157.36 (thicker green line on the chart). Around 157.36, I will exit long positions and open shorts in the opposite direction (expecting a 30-35 point reversal). The pair's rise will depend on strong U.S. statistics.Important! Before buying, ensure that the MACD indicator is above the zero mark and just beginning to rise from it.
Scenario #2:
I also plan to buy USD/JPY today in the event of two consecutive tests of the 156.61 level, provided the MACD indicator is in the oversold zone. This will limit the pair's downward potential and trigger a market reversal upward. Growth can be expected toward the opposite levels of 157.01 and 157.36.
Sell Signal
Scenario #1:
I plan to sell USD/JPY after breaking below the 156.61 level (red line on the chart), which could lead to a rapid decline. The key target for sellers will be 156.26, where I plan to exit shorts and immediately open longs in the opposite direction (expecting a 20-25 point reversal). Renewed dollar pressure is likely only with weak U.S. data.Important! Before selling, ensure that the MACD indicator is below the zero mark and just beginning to fall from it.
Scenario #2:
I also plan to sell USD/JPY today in the event of two consecutive tests of the 157.01 level, provided the MACD indicator is in the overbought zone. This will limit the pair's upward potential and trigger a market reversal downward. Declines can be expected toward the opposite levels of 156.61 and 156.26.
Chart Details
- Thin green line – Entry price for buying the trading instrument.
- Thick green line – Suggested price for placing Take Profit or manually closing positions, as further growth above this level is unlikely.
- Thin red line – Entry price for selling the trading instrument.
- Thick red line – Suggested price for placing Take Profit or manually closing positions, as further decline below this level is unlikely.
- MACD Indicator – Important to consider overbought and oversold zones when entering the market.
Important Notes
Beginner Forex traders must exercise extreme caution when making market entries. It is better to stay out of the market before significant fundamental reports to avoid sharp price fluctuations. If you choose to trade during news releases, always set stop-loss orders to minimize losses. Without stop-loss orders, you risk losing your entire deposit quickly, especially when trading large volumes without proper money management.
Remember, successful trading requires a clear trading plan, like the one outlined above. Making spontaneous trading decisions based on current market conditions is an inherently losing strategy for intraday traders.
The material has been provided by InstaForex Company - www.instaforex.com
