Analysis of Trades and Trading Tips for the Japanese Yen

The test of the price at 156.55 occurred when the MACD indicator was just beginning to move downward from the zero mark, confirming the correct entry point for selling dollars. As a result, the pair decreased by 30 pips.

The yen rebounded today after Bank of Japan board member Hajime Takata, a strong advocate of tight monetary policy within the group, renewed calls for further interest rate hikes. Takata stated that the bank should increasingly shift direction and begin communicating under the assumption that the goal of achieving price stability is nearly reached. However, this is only a short-term fluctuation unlikely to significantly affect the overall trend of yen weakness against the U.S. dollar, so be cautious about further sales of USD/JPY.

For the intraday strategy, I will focus more on implementing scenarios #1 and #2.

Buy Scenarios:

Scenario #1: I plan to buy USD/JPY today when it reaches an entry point around 156.04 (green line on the chart), targeting a move to 156.36 (thicker green line on the chart). At the 156.36 level, I intend to exit the long positions and immediately sell back on the pullback (aiming for a 30-35-pip move in the opposite direction from the level). It is best to resume buying the pair during corrections and significant pullbacks in USD/JPY. Important! Before buying, ensure the MACD indicator is above the zero mark and just starting to rise from it.

Scenario #2: I also plan to buy USD/JPY today in case of two consecutive tests of the price at 155.82 when the MACD indicator is in the oversold area. This will limit the pair's downward potential and lead to a market reversal upwards. One can expect growth towards opposing levels of 156.04 and 156.36.

Sell Scenarios:

Scenario #1: I plan to sell USD/JPY today only after updating the 155.82 level (red line on the chart), which will trigger a rapid decline in the pair. The key target for sellers will be the level of 155.46, where I intend to exit the shorts and immediately buy back in the opposite direction (aiming for a movement of 20-25 pips in the opposite direction from the level). It is better to sell as high as possible. Important! Before selling, ensure the MACD indicator is below the zero mark and just starting to decline from it.

Scenario #2: I also plan to sell USD/JPY today in case of two consecutive tests of the price at 156.04 when the MACD indicator is in the overbought area. This will limit the pair's upward potential and lead to a market reversal downwards. One can expect a decline towards opposing levels of 155.82 and 155.46.

What the Chart Shows:

• Thin Green Line: Entry price for buying the trading instrument.
• Thick Green Line: Estimated price for setting Take Profit or locking in profits, as further growth above this level is unlikely.
• Thin Red Line: Entry price for selling the trading instrument.
• Thick Red Line: Estimated price for setting Take Profit or locking in profits, as further decline below this level is unlikely.
• MACD Indicator: When entering the market, focus on the overbought and oversold zones.

Important:

Beginner traders in the Forex market must make entry decisions very cautiously. It is best to stay out of the market before significant fundamental reports are released to avoid sudden price fluctuations. If you decide to trade during news releases, always set stop orders to minimize losses. Without stop orders, you can quickly lose your entire deposit, especially if you do not use money management and trade large volumes.

Remember, to trade successfully, you must have a clear trading plan, as presented above. Spontaneous trading decisions based on the current market situation are a losing strategy for intraday traders.