The test of 150.29 occurred at a time when the MACD indicator was just starting to move down from the zero mark, which confirmed the correct entry point to sell the pair. As a result, USD/JPY dropped by 45 pips, but we did not reach the target level. Today, market participants are riveted a government report on the US labor market, which will determine the future trajectory of USD/JPY. Employment growth and a falling jobless rate in the US are likely to push the trading instrument higher, leaving it above the 150 level. If the data indicates problems in the labor market and the ISM non-manufacturing PMI declines lower than economists’ forecasts, the US dollar will certainly weaken. Therefore, USD/JPY will move downward. As for intraday prospects, I will act based on the implementation of scenarios No. 1.
Buy signals
Scenario No. 1. You can buy USD/JPY today when the price reaches the entry point around 150.40, plotted by the green line on the chart, aiming to hit the level of 150.93, plotted by the thicker green line. In the area of 150.93, I recommend closing long positions and opening short ones in the opposite direction, betting on a movement of 30-35 pips in the opposite direction from the level. You can count on the pair’s growth today, especially after such a good downward correction observed recently. Important! Before buying, make sure that the MACD indicator is above the zero mark and is just starting to rise from it.
Scenario No. 2. You can also go long on USD/JPY today in case of two consecutive tests of 150.15 at a time when the MACD indicator is in the oversold area. This will limit the downward potential of USD/JPY and lead to an upward reversal of the market. We can expect growth to the opposite levels of 150.40 and 150.93.
Sell signals
Scenario No. 1. Selling USD/JPY today is possible only after the level of 150.15 is updated, plotted by the red line on the chart. This will lead to a rapid decline in the instrument. The key target for the sellers will be 149.62, where I recommend closing sell positions, as well as immediately opening buy positions in the opposite direction in anticipation of a movement of 20-25 pips in the opposite direction from the level. Any forex intervention by the Bank of Japan will lead to an immediate sell-off of the USD/JPY. Weak data on the American labor market will also be a reason to sell USD/JPY. Important! Before selling, make sure that the MACD indicator is below the zero mark and is just starting to decline from it.
Scenario No. 2. Another option is to sell USD/JPY today in case of two consecutive tests of the price of 150.40 at a time when the MACD indicator is in the overbought area. This will limit the instrument’s upward potential and lead to a downward reversal. We can expect a decline to the opposite levels of 150.15 and 149.62.
What’s on the chart:
Thin green line is the entry price at which you can buy the trading instrument.
Thick green line is the price where you can set Take-Profit (TP) or manually fix profits, as further growth above this level is unlikely.
Thin red line is the entry price at which you can sell the trading instrument.
Thick red line is the 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 in the cryptocurrency market need to be very cautious when making decisions to enter the market. It is best to stay out of the market before important fundamental reports are released to avoid getting caught in sharp price fluctuations. If you decide to trade during news releases, always place stop orders to minimize losses. Without setting stop orders, you can quickly lose your entire deposit, especially if you don’t use money management and trade with large volumes.
Remember, for successful trading, it is necessary to have a clear trading plan, similar to the one I presented above. Spontaneously making trading decisions based on the current market situation is inherently a losing strategy for an intraday trader.
The material has been provided by InstaForex Company – www.instaforex.com
Overview of trading and tips on USD/JPY
The test of 150.29 occurred at a time when the MACD indicator was just starting to move down from the zero mark, which confirmed the correct entry point to sell the pair. As a result, USD/JPY dropped by 45 pips, but we did not reach the target level. Today, market participants are riveted a government report on the US labor market, which will determine the future trajectory of USD/JPY. Employment growth and a falling jobless rate in the US are likely to push the trading instrument higher, leaving it above the 150 level. If the data indicates problems in the labor market and the ISM non-manufacturing PMI declines lower than economists’ forecasts, the US dollar will certainly weaken. Therefore, USD/JPY will move downward. As for intraday prospects, I will act based on the implementation of scenarios No. 1.
Buy signals
Scenario No. 1. You can buy USD/JPY today when the price reaches the entry point around 150.40, plotted by the green line on the chart, aiming to hit the level of 150.93, plotted by the thicker green line. In the area of 150.93, I recommend closing long positions and opening short ones in the opposite direction, betting on a movement of 30-35 pips in the opposite direction from the level. You can count on the pair’s growth today, especially after such a good downward correction observed recently. Important! Before buying, make sure that the MACD indicator is above the zero mark and is just starting to rise from it.
Scenario No. 2. You can also go long on USD/JPY today in case of two consecutive tests of 150.15 at a time when the MACD indicator is in the oversold area. This will limit the downward potential of USD/JPY and lead to an upward reversal of the market. We can expect growth to the opposite levels of 150.40 and 150.93.
Sell signals
Scenario No. 1. Selling USD/JPY today is possible only after the level of 150.15 is updated, plotted by the red line on the chart. This will lead to a rapid decline in the instrument. The key target for the sellers will be 149.62, where I recommend closing sell positions, as well as immediately opening buy positions in the opposite direction in anticipation of a movement of 20-25 pips in the opposite direction from the level. Any forex intervention by the Bank of Japan will lead to an immediate sell-off of the USD/JPY. Weak data on the American labor market will also be a reason to sell USD/JPY. Important! Before selling, make sure that the MACD indicator is below the zero mark and is just starting to decline from it.
Scenario No. 2. Another option is to sell USD/JPY today in case of two consecutive tests of the price of 150.40 at a time when the MACD indicator is in the overbought area. This will limit the instrument’s upward potential and lead to a downward reversal. We can expect a decline to the opposite levels of 150.15 and 149.62.
What’s on the chart:
Thin green line is the entry price at which you can buy the trading instrument.
Thick green line is the price where you can set Take-Profit (TP) or manually fix profits, as further growth above this level is unlikely.
Thin red line is the entry price at which you can sell the trading instrument.
Thick red line is the 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 in the cryptocurrency market need to be very cautious when making decisions to enter the market. It is best to stay out of the market before important fundamental reports are released to avoid getting caught in sharp price fluctuations. If you decide to trade during news releases, always place stop orders to minimize losses. Without setting stop orders, you can quickly lose your entire deposit, especially if you don’t use money management and trade with large volumes.
Remember, for successful trading, it is necessary to have a clear trading plan, similar to the one I presented above. Spontaneously making trading decisions based on the current market situation is inherently a losing strategy for an intraday trader.
The material has been provided by InstaForex Company – www.instaforex.com
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