Analysis of Trades and Trading Tips for the Japanese Yen

There were no tests of the levels I outlined in the second half of the day. The primary reason for the low volatility was the lack of fundamental data from the U.S. Surprisingly, speeches from Federal Reserve representatives did not reignite the desire to buy the U.S. dollar, which was unexpected. Today, Japan released solid data on wage levels, household spending, and the current account balance, which helped the yen recover against the dollar but didn't significantly impact the overall market dynamic. The lower the pair moves, the more attractive it becomes for speculators betting on further dollar strengthening following Friday's strong U.S. labor market data. I'll focus on implementing scenarios #1 and #2 for today's intraday strategy.

Buy Signal

Scenario #1: Today, I plan to buy USD/JPY at the entry point around 148.20 (green line on the chart), targeting a rise to 148.99 (thicker green line on the chart). At the 148.99 level, I plan to exit the buy position and open a sell trade in the opposite direction (expecting a move of 30-35 pips in the opposite direction from this level). The pair's growth can be expected to continue the new trend. Important: Before buying, ensure that the MACD indicator is above the zero line and starting to rise.

Scenario #2: I also plan to buy USD/JPY today in the event of two consecutive tests of the 147.85 price level when the MACD indicator is in the oversold zone. This will limit the pair's downward potential and lead to an upward market reversal. Growth to the opposite levels of 148.20 and 148.99 can be expected.

Sell Signal

Scenario #1: I plan to sell USD/JPY today after breaking below the 147.85 level (red line on the chart), which should lead to a quick decline in the pair. The key target for sellers will be 147.17, where I plan to exit the sell position and immediately open a buy trade in the opposite direction (expecting a move of 20-25 pips from the level). Selling pressure will return if there is unsuccessful activity around the daily high. Important: Before selling, ensure that the MACD indicator is below the zero line and starting to decline.

Scenario #2: I also plan to sell USD/JPY today in the event of two consecutive tests of the 148.20 price level when the MACD indicator is in the overbought zone. This will limit the pair's upward potential and lead to a downward market reversal. A decline to the opposite levels of 147.85 and 147.17 can be expected.

What's on the Chart:

Thin green line: Entry price at which you can buy the trading instrument.

Thick green line: The anticipated price where you can set Take Profit or manually lock in profits, as further growth above this level is unlikely.

Thin red line: Entry price at which you can sell the trading instrument.

Thick red line: The anticipated price where you can set Take Profit or manually lock in profits, as further decline below this level is unlikely.

MACD Indicator: When entering the market, it is important to be guided by overbought and oversold zones.

Important: Novice traders in the forex market should be cautious when making market entry decisions. It is best to stay out of the market before the release of important fundamental reports to avoid sudden exchange rate fluctuations. If you decide to trade during news releases, always set stop orders to minimize losses. You can quickly lose your entire deposit without stop orders, especially if you do not use money management and trade in large volumes.

And remember, for successful trading, you need to have a clear trading plan, like the one presented above. Spontaneous trading decisions based on the current market situation are initially a losing strategy for an intraday trader.