Analysis of Trades and Tips for Trading the Japanese Yen

The pair continues to lose volatility, as evidenced by the morning's movements. The test of the 147.20 level occurred when the MACD indicator was just starting to rise from the zero mark, confirming the correct entry point for buying the dollar. However, as you can see on the chart, significant growth in the pair did not materialize. Most likely, we will not see anything exciting in the second half of the day since there is no US data and no scheduled speeches by Federal Reserve representatives. For this reason, it's better to trade inside the sideways channel. Regarding the intraday strategy, I plan to act based on the implementation of Scenario #2.

Buy Signal

Scenario #1: Today, I plan to buy USD/JPY when it reaches the entry point around 147.46 (the green line on the chart) with the target of rising to the 148.06 level (a thicker green line on the chart). At 148.06, I will exit my purchases and open sales in the opposite direction, targeting a move of 30-35 points in the opposite direction from that level. A strong rise in the pair today seems unlikely. Important: Before buying, make sure that the MACD indicator is above the zero mark and is just beginning to rise from it.

Scenario #2: I also plan to buy USD/JPY today if the 146.97 price level is tested twice consecutively when the MACD indicator is in the oversold area. This will limit the pair's downside potential and lead to an upward market reversal. A rise to the levels of 147.46 and 148.06 can be expected.

Sell Signal

Scenario #1: I plan to sell USD/JPY today after it breaks below the 146.97 level (the red line on the chart), which will likely lead to a rapid decline in the pair. The key target for sellers will be the 146.29 level, where I will exit my sales and immediately buy USD/JPY, aiming for a move of 20-25 points in the opposite direction. Pressure on the pair will return if buyers fail to show activity near the daily high, as observed in the morning. Important: Before selling, make sure that the MACD indicator is below the zero mark and is just beginning its decline from it.

Scenario #2: I also plan to sell USD/JPY today if the 147.46 price level is tested twice consecutively when the MACD indicator is in the overbought area. This will limit the pair's upward potential and lead to a downward market reversal. A decline to the levels of 146.97 and 146.29 can be expected.

Chart Overview:

• Thin green line – The entry price at which you can buy the trading instrument.
• Thick green line – The suggested price where you can set Take Profit or manually fix profits, as further growth above this level is unlikely.
• Thin red line – The entry price at which you can sell the trading instrument.
• Thick red line – The suggested price where you can set Take Profit or manually fix profits, as further decline below this level is unlikely.
• MACD Indicator – When entering the market, it is important to consider overbought and oversold zones.

Important: Beginner traders on the Forex market need to be very cautious when making entry decisions. It is best to stay out of the market before the release of important fundamental reports to avoid being caught in sharp price swings. 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 don't use risk management and trade with large volumes.

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