Overview of trading and tips on USD/JPY

The price test of 155.72 occurred at a time when the MACD indicator had sharply fallen from the zero mark, which affected the dollar's potential to decline. For this reason, I did not sell. After a considerable amount of time, another test at 155.72 took place, and at that moment, the MACD indicator was just starting to move down, which confirmed the entry point to sell the dollar, especially after data showed that US inflation eased, allowing the Federal Reserve to reconsider rate cuts, which is bad for the US dollar and its strength. As a result, the USD/JPY pair dropped towards the target level at 155.11. Buying from there on a rebound made it possible for traders to gain an additional profit of about 30 pips. Today, data showed that Japan's GDP shrank, but this only partially helped dollar bulls offset yesterday's losses. Good news about the improvement in industrial production neutralized the weak GDP data. Most likely, the bulls will take advantage of the favorable prices and start buying the dollar again, so pay attention to this point when making selling decisions. As for the intraday strategy, I will rely more on the implementation of scenario No. 2.

Buy signals

Scenario No. 1. I plan to buy USD/JPY today when the price reaches the entry point at 154.17 plotted by the green line on the chart, aiming for growth to 155.01 plotted by the thicker green line on the chart. In the area of 155.01, I'm going to exit long positions and open short ones in the opposite direction, expecting a movement of 30-35 pips in the opposite direction from that level. You can count on USD/JPY's growth today in continuation of a developing trend. Before buying, make sure that the MACD indicator is above the zero mark and is just starting to rise from it.

Scenario No. 2. I also plan to buy USD/JPY today in case of two consecutive tests of 153.71 at the time when the MACD indicator is in the oversold area. This will limit the downward potential of the pair and lead to an upward reversal of the market. We can expect growth to the opposite levels of 154.17 and 155.01.

Sell signals

Scenario No. 1. I plan to sell USD/JPY today only after testing the level of 153.71 plotted by the red line on the chart, which will lead to a rapid decline in the price. The key target for sellers will be 152.94, where I am going to exit short positions and also immediately open long ones in the opposite direction, expecting a movement of 20-25 pips in the opposite direction from that level. Pressure on USD/JPY may return in case the price fails to settle near today's high. Before selling, make sure that the MACD indicator is below the zero mark and is just starting to decline from it.

Scenario No. 2. I also plan to sell USD/JPY today in case of two consecutive tests of the price of 154.17 at the time when the MACD indicator is in the overbought area. This will limit the pair's upward potential and lead to a downwards market reversal. We can expect a decline to the opposite levels of 153.71 and 152.94.

What's on the chart:

The thin green line is the entry price at which you can buy the trading instrument.

The 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.

The thin red line is the entry price at which you can sell the trading instrument.

The 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.